Amazon Takes a Net Loss

by techsnarkblog

Jeff Bezos is a true business disrupter. While some companies push for higher profits, Amazon continues to run with a near break-even strategy while it pushes for market share. This has kept investors happy up until this last quarter; Amazon announced an operating loss. $7 million in losses on $15.7 billion (22% year-over-year increase) is a resolvable problem.

While the stock-price dropped originally, it is now back up over its closing price the day before. This makes sense. If you believe in the Amazon strategy, than nothing has really changed. What continues to be baffling is how Amazon is graded on a different curve compared to companies like Apple, Google, and Samsung. I get that Amazon’s business is far different in many aspects, but Amazon is investing a lot of energy and money in the e-book and tablet market with hardware that’s sold at break-even or loss. 

You either believe Jeff Bazos is leading the company to the promised land, or you do not. Regardless, I can’t see this company being truly profitable anytime soon.

Note: I am not a financial advisor! My comments are pure speculation.