The following char-ti-cle on Amazon is worth a read. Most folks are familiar with the fact that Amazon rarely shows a profit. This charticle, though, provides a concise overview of how Amazon continues to plow cash into expanding their business reach. Make note of the opinion that someone at Amazon has a job of making sure profits equal nil each quarter – reminds me of how Cisco used to always beat their estimates by 1 cent per share. Net-net, Amazon plows all cash into growth opportunities in lieu of net income. How long will that continue? Who knows. In recent months, the stock market has supposedly shown some displeasure. Recent history aside, the stock has been on quite a tear for quite a while. In summary, very well written piece that I’m sure you will find enlightening.
Rindge Leaphart

Andreessen Horowitz

Amazon has a tendency to polarize people. On one hand, there is the ruthless, relentless, ferociously efficient company that’s building the Sears Roebuck of the 21st Century. But on the other, there is the fact that almost 20 years after it was launched, it has yet to report a meaningful profit. This chart captures the contradiction pretty well – massive revenue growth, no profits, or so it would seem. But actually, neither of these lines gives you a good sense of what’s really going on.

1 Source: a16z

Amazon discloses revenue in three segments – Media, Electronics & General Merchandise (‘EGM’) and ‘Other’, which is mostly AWS. As this chart shows, these look very different (this and most of the following ones use ’TTM’ – trailing 12 months, which smooths out the seasonal fluctuations and makes it easier to see the underlying trends). The media business is still growing, but it’s…

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