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by sam-mueller
4555 days ago
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FTA: "But, for all intents and purposes, Amazon does not make money" This is a very myopic view on Amazon's current business model. They are choosing to break even/lose money in exchange for growth. They use profits to expand their business and break into new markets, which is evidenced by initiatives like Kindle Fire and Amazon Instant Video. At any time, Amazon could change this growth strategy, and profits would flow like the Niagra. Investors understand, and that is why their valuation is sky high at over 150x future price to earnings. |
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