Amazon Is Unprofitable — and It's Completely on Purpose

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Amazon has two basic options: invest in long-term growth to eventually conquer the world or cut costs and turn a profit to benefit investors.

CEO Jeff Bezos continues to make it clear the company is going with the first choice.

See also: Amazon Fire: The Phone That Makes You a Star

This year, Amazon spent $19.4 billion from April through June to generate $19.3 billion, resulting in a not a entirely unexpected loss. Analysts had predicted the company would not turn a profit in the quarter. The only surprise was how much of a loss — more than had been anticipated

It proved too much for investors. The stock moved steadily lower after the earnings release and the earnings call, during which Amazon executives made no attempt to convince investors that it is about to change its ways. Read more...

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