5 ms·

If they don't want a profit, what's their motivation for existing?

• amaks 12y ago
  They do want the profit, they just keep reinvesting it to capex.
• RaptorJ 12y ago
  "Amazon" isn't a thing that has wants or feelings. You can not make a profit and still pay your executives a bundle of money.
• zaidf 12y ago
  It isn't that they don't want a profit, it's just that as long as they feel they can reinvest the profit relatively safely to make even more profit in the future, they will continue doing so.
• AndrewKemendo 12y ago
  The other replies to this aside, I think the assumption inherent in your question is myopic. I know for myself, my motivation to get capital (profits) is so I can build things that improve decision making, increase longevity and in the end expand knowledge worldwide. Perhaps Bezos has motivations that are along the same lines and this is how he is achieving them.
• gatehouse 12y ago
  Since they are a publicly traded company, the ownership can be fluid. As a shareholder you can stay in or cash out whenever you want, if you want to simulate a profit you can sell shares periodically. So the separation between the company's internal finances and the exchange of shares on the stock market is what allows this to happen and still make sense.
• tim333 12y ago
  Profit in this case is generally a quantity calculated by accounting rules (US GAAP probably) and is a different thing from wealth created. Amazon has produced a lot of wealth for it's shareholders, enough for Bezos to be worth ~$30bn build spacecraft as his hobby. The difference is more obvious with a company like Facebook. Say they spend $1bn building the company from zero to 500m users and at the same time receive $1bn in ad revenue. Their accounting profit is $0 but their wealth is a lot due to the value of the 500m users. There are advantages to keeping the GAAP profit near zero because you pay no corporation tax that way.
  • wodenokoto 12y ago
    But in the end that wealth is based on people's belief that 500m users can be turned into a profit.
• Twirrim 12y ago
  Your question could be interpreted in a couple of different ways. Are you implying that profit is the only reason for a company to exist? If so, would you indulge my curiosity, what leads you to think that way?
• auxbuss 12y ago
  You might be confusing profit with margin. You need margin, in general, but you don't necessarily need profit.