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How can $273 million in profit be a bad sign at all? Sometimes I don't get oeconomics.

• bildung 12y ago
  How can $273 million in profit be a bad sign at all? Sometimes I don't get oeconomics. Because in the context of the 75 billion in revenue needed to generate the 273 million in profit, thats a profit rate of 0.0004%. So every tiny false step puts the company in the red. The numbers basically show that amazon rides a conceiled loss leader strategy for many years now. Thats traditionally a quite risky move, because once you've crushed competition and saturated the market, you've reached the point where you have to make profit or go insolvent. But generating profit would involve raising prices, which would give the competition more breathing space - amazon essentially has to give up market share to not go bankrupt.