I wonder if analysts have learned yet not to dismiss apparently crazy moves by Jeff Bezos.
Amazon's Profit Plunges 73%
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Re: Amazon's Profit Plunges 73%
#12Profit's are such a volatile metric. Amazon's been spending like crazy in the last few months on producing new Kindle products - most of which are being sold as a loss leader in an effort to push book sales. Note that Amazon's overall Revenues are up 44% Less sensational, more nuts and bolts article http://www.marketwatch.com/story/amazoncom-announces-third-q...
For what it's worth, that's the company press release you just linked to. (Business Wire is a service that broadcasts press releases and regulatory filings.)
Compare: http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=iro...
Re: Amazon's Profit Plunges 73%
#13Seems Amazon is taking the long view, and reinvesting their revenues. The opportunity for them is huge. Wall street doesnt care and would rather see quarterly profits. Good buying opportunity if you're interested in watching them take over everything in the next 5 years.
Re: Amazon's Profit Plunges 73%
#14I wonder if analysts have learned yet not to dismiss apparently crazy moves by Jeff Bezos.
They'll probably never learn, but Jeff doesn't care: http://www.geekwire.com/2011/amazons-bezos-innovation
Re: Amazon's Profit Plunges 73%
#15Profit's are such a volatile metric. Amazon's been spending like crazy in the last few months on producing new Kindle products - most of which are being sold as a loss leader in an effort to push book sales. Note that Amazon's overall Revenues are up 44% Less sensational, more nuts and bolts article http://www.marketwatch.com/story/amazoncom-announces-third-q...
AFAIK there is no substantial evidence that the Kindle Fire is being sold as a loss leader however I can imagine the profit margins are slim.
Re: Amazon's Profit Plunges 73%
#16Profit's are such a volatile metric. Amazon's been spending like crazy in the last few months on producing new Kindle products - most of which are being sold as a loss leader in an effort to push book sales. Note that Amazon's overall Revenues are up 44% Less sensational, more nuts and bolts article http://www.marketwatch.com/story/amazoncom-announces-third-q...
AFAIK there is no substantial evidence that the Kindle Fire is being sold as a loss leader however I can imagine the profit margins are slim.
Given that no kindles fires have shipped, they haven't booked any revenue or costs for them yet, either.
Re: Amazon's Profit Plunges 73%
#17I wonder if analysts have learned yet not to dismiss apparently crazy moves by Jeff Bezos.
If they had they would probably be off running successful companies of their own instead of analyzing.
Re: Amazon's Profit Plunges 73%
#18Earlier quoted context omitted.
AFAIK there is no substantial evidence that the Kindle Fire is being sold as a loss leader however I can imagine the profit margins are slim.
Given that no kindles fires have shipped, they haven't booked any revenue or costs for them yet, either.
Not shipping doesn't imply no costs. A company could produce many million units of a product but be unable to ship them for regulatory reasons, for example.
Re: Amazon's Profit Plunges 73%
#19Earlier quoted context omitted.
AFAIK there is no substantial evidence that the Kindle Fire is being sold as a loss leader however I can imagine the profit margins are slim.
Given that no kindles fires have shipped, they haven't booked any revenue or costs for them yet, either.
I'm pretty sure their vendors would disagree.
Re: Amazon's Profit Plunges 73%
#20I wonder if analysts have learned yet not to dismiss apparently crazy moves by Jeff Bezos.
I'm sure the employees and shareholders in the know are taking it with stride -- in 6 months they'll look back and laugh.