Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:

Regularly scheduled events

Morning Metaverse

View
3 Replies. 1 pages. Viewing page 1.
< Newer [ 1 ] Older >

3. Re: Morning Metaverse Oct 25, 2013, 23:38 killer_roach
 
Beamer wrote on Oct 25, 2013, 12:35:
HorrorScope wrote on Oct 25, 2013, 12:31:
I want to thank amazon for basically giving away their products at cost... All those billions sold, no profit for them.

It's not clever accounting, either - Amazon legitimately loses money every day.

It's amazing what being incredibly smart about your business model and growth, despite losses, can do to keep a company thriving despite repeatedly spending more than it earns.

Basically it amounts to that Amazon loses money because they spend so much money beefing up their infrastructure and entering new markets. If they ever decided to stop doing that, they could be putting up decent-sized profits (~$400-700 million a quarter, possibly cracking a billion in Q4s), but their focus is to continually do more for the customers, which in turn drives revenue growth, which gives them more money to spend on improving service. And Wall Street seems largely okay with this, mostly because a) they can get the profits whenever they want by scaling expansion back, and b) in some ways, AMZN's shareholders are getting their dividends through increased consumer surplus as customers of the company.
 
Reply Quote Edit Delete Report
 
2. Re: Morning Metaverse Oct 25, 2013, 12:35 Beamer
 
HorrorScope wrote on Oct 25, 2013, 12:31:
I want to thank amazon for basically giving away their products at cost... All those billions sold, no profit for them.

It's not clever accounting, either - Amazon legitimately loses money every day.

It's amazing what being incredibly smart about your business model and growth, despite losses, can do to keep a company thriving despite repeatedly spending more than it earns.
 
-------------
Music for the discerning:
http://www.deathwishinc.com
http://www.hydrahead.com
http://www.painkillerrecords.com
Reply Quote Edit Delete Report
 
1. Re: Morning Metaverse Oct 25, 2013, 12:31 HorrorScope
 
I want to thank amazon for basically giving away their products at cost... All those billions sold, no profit for them.  
Avatar 17232
 
Reply Quote Edit Delete Report
 
3 Replies. 1 pages. Viewing page 1.
< Newer [ 1 ] Older >


footer

Blue's News logo