Can someone explain how or why this company is actually losing money?

>>923376
They invest all their money in scaling up.

>>923376
too many variable costs

>>923376
free shipping

Do you remember in rollercoaster tycoon when you kept taking out loans and making a sick park by raising and lower land and building rollercoasters and every once and a while you'd chill and go alright I'm growing like a madcunt and I'll make money if I stop and then keep taking loans to make it bigger

It's like that

>>923376
They pay their workers a living wage.
They aren't great at controlling variable labor costs.
>amazon warehouse worker reporting in

They invest a lot.

>>923376
They're spending huge sums of money trying to dominate in a ton of different areas at the moment.

They are pushing amazon prime hard and bundled it with their foray into netflix's territory of providing streamable entertainment. Along with a bunch of features such as amazon pantry trying to get people to order all their foodstuffs and basically 100% of everything they buy via amazon and that's very expensive.


It's all very risky and I don't think the move will pay off. Although the amazon prime free trial lasts a year and then charges some massive sum of money and they started beefing it up with all their free content (including the one thing netflix is missing, HBO content) and all their other features around 8 months ago I think. So it might be in a few months they rake in some massive income from all the people who signed up thinking they would cancel by the end of the year and forgot. It's like 100 dollars so if they have 10 million people signed up that's a cool billion.

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>>923376

They aren't doing the "eBay Thing"

>>923376
Amazon hasn't made money in 20 years. Why should they now when the stock is high? For 20 years wall street has believed that amazon has "no infrastructure costs" and therefore it would be some enormous monopoly with a high profit margin. In reality, any company with low infrastructure costs is going to have fierce competition if the margins are high which will drive profits way down. Amazon may never yield a profit and if it does then it'll be extremely small.

>>923467
they actually made some money recently. not much per share, but it is there and expected to get more during the next 1-2 years

also they waste a bunch of money on failure projects like the fire phone. on the other hand they own twitch and that will be getting more and more important throughout the next years.

>>923376
And yet the stock will go up after earnings reports on the 21st

>>923376
sales tax hurt them. also they have to try 20 different things and see if they're profitable

Every project they have fails miserably. Even Prime isn't doing that well, especially with a price increase coming up.

They need to scale down and focus on ecommerce.

For every success they seem to have wasted a lot of money of development, both good and bad. It's like a kid who uses all his lego on the up ramp of a rollercoaster knowing the bigger the up ramp is the bigger the fun bit will be. But never gets to the fun bit and carries on building the up ramp.

If they actually stopped the bullshit for a year and took in a profit the price would soar.

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>>924126
Not all of them fail.

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https://en.m.wikipedia.org/wiki/Diseconomies_of_scale

Simple economics

>>923482
I bought phantom pain from amazon. does this contribute??

>>924386
this tbh

>>923376
https://plus.google.com/+RipRowan/posts/eVeouesvaVX

The ceo, jeff bezos, hates paying taxes, so all profit is invested in the company to avoid paying taxes on profit. He says investors should look at free cash flow to get an idea of how well the company is doing.

>>924386

this. they be profitable thanks to this. they potentially reach monopoly level in other areas with the cash flow support of this