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Amazon hasn't made a profit only because they've chosen to re-invest every penny of profit they would make back into the company. If they were forced to show a
by cableshaft 11y ago
Amazon hasn't made a profit only because they've chosen to re-invest every penny of profit they would make back into the company. If they were forced to show a profit next year, they could pretty easily make a few cuts here and there and produce a profit.
http://www.forbes.com/sites/timworstall/2014/09/07/the-internal-economics-of-amazons-no-profits-growth-model/ http://www.forbes.com/sites/timworstall/2014/09/07/the-inter...
- ThomPete 11y agoI am aware of why they haven't made a profit. The point is that this is still a bet and if the strategy doesn't hold up they will be punished much more quickly than a privately funded company. My point is that the latency that exist in privately funded unicorns can end up creating a bubble exactly because the feedback loop is too slow.