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Shareholders want their profits now, like Apple -- not in some imaginary future, like Amazon!
by mhuffman 12y ago
Shareholders want their profits now, like Apple -- not in some imaginary future, like Amazon!
- aceperry 12y agoI had no idea that Amazon shareholders were patiently waiting for future profits.
- wdr1 12y agoThat's more or less the only way to justify an infinite P/E ratio.
- aceperry 12y agoWhich brings the question of: How does Amazon get away with not showing immediate and growing profits while other companies claim they need to do so.
- tonyedgecombe 12y agoThe idea that lack of profit is acceptable while revenue grows, the expectation is that once revenue flattens profits can be unlocked. I'm sceptical this will ever happen with Amazon.
- mmf 12y agoMeanwhile society benefits from its large economy of scale running on low margin. I dread the day Amazon will start running significant profits...
- tonyedgecombe 12y agoDistribution is inherently a low margin business, that's why I don't think they ever will start making significant profits.
- crdoconnor 12y agoThey have a pretty consistent record of showing steady revenue growth. That's usually enough to calm investor nerves.
- adventured 12y agoIf you were right, Amazon would be trading at a fraction of what Target, Walmart, Costco, etc. are. Their sales to valuation ratio would be far worse than those companies. The exact opposite is the case. Shareholders are being extraordinarily patient with Amazon, and Amazon is being rewarded for their long-term thinking with an immense valuation.