Amazon: Never really profitable, now has first loss in 5 years. Share price unaffected.

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http://www.reuters.com/article/2012/10/2...edType=RSS&feedName=globalMarketsNews&rpc=43

Hey, AMZN is a good, safe investment with its P/E of 315. This is just a little hiccup. Why worry?

[freeradical]

I remember when they operated at a loss for years.

[sekker]

I heard shares were down 9%.

But still, amazing. Compared to companies like Apple or Microsoft - which actually MAKE something AND money! - Amazon seems to always get a pass,

[M A V I C]

Amazon always operates with a very thin margin. I think most investors are aware that 1) amazon isn't going to post huge profits and 2) they're continually investing in the future. Heck, they are now buying up all the real estate they were leasing. Short term, big cost. Long term, they're saving a lot more.

I think Amazon is pretty smart with this sort of stuff.

[Carnos Jax]

With some of their prices, I've always wondered how (if) Amazon made any money. Yet they're the Internet retail giant. Further yet, when I ask most of my friends...they say they don't use it much because they're not too sure about buying online (they buy everything locally). I can't stagger to think about Amazon's profits once they convert these 'heathens'. :-P

[dotman]

i know why amazon will succeed. it's called shipping. both walmart and amazon are in a duel of "same day shipping". walmart already has the global infrasturture to do that more quickly. but in online shopping, amazon is the bigger brand. once bezos ramps up distribution, i think they'll win that war.

which brings me to a bigger more profitable topic. who will be the shipper. does ups sound familiar?

could be interesting.

dot.

[lazydays]

I live in a smaller town where it's very difficult to find things. Instead of popping into a store to grab something I usually have to go to several stores, using up my day, and settle for something that's not quite what I wanted. With Amazon I get exactly what I wanted, delivered in two days, often for less money. I love those guys!

[jonny]

My niece works at Amazon. She loves her position. They love her performance. Yet they're going to fire her at the end of the month. She's been working there for 11 months and if they let her work there any longer, they have to pay her benefits. That's one way to save a buck.

[M A V I C]

jonny wrote:
My niece works at Amazon. She loves her position. They love her performance. Yet they're going to fire her at the end of the month. She's been working there for 11 months and if they let her work there any longer, they have to pay her benefits. That's one way to save a buck.

Eh, she's a contractor, right? She's not going to get "fired" her contract just won't be renewed. And if she's in WA, it's state law that the contract can't go past 12mo. It's not that they have to pay her benefits after 12mo. Her contacting agency should be paying her benefits already.

[jonny]

She's an Amazon employee. Not hired through a contractor.