Re:Verizon closes $4.5B acquisition of Yahoo, Marissa Mayer ...
by tlb on Tuesday June 13, 2017 @01:18PM
(#14546522)
Profit is a terrible metric. Because profit = revenue - expenses, and the easy way to increase profit is to cut expenses like R&D. Good companies pour nearly all their free revenue back into expansion and R&D, which is why Amazon has small profits but a constantly growing lineup of popular products and services.
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Re:Verizon closes $4.5B acquisition of Yahoo, Marissa Mayer ...
by JetSpiegel on Tuesday June 13, 2017 @07:35PM
(#14549594)
In that case, why not go the extra mile and register as a nonprofit? After all, if you are not generating profit, why go to all the trouble of having shareholders and the like?
Re:Verizon closes $4.5B acquisition of Yahoo, Marissa Mayer ...
by gnaritas on Tuesday June 13, 2017 @07:36PM
(#14549599)
Reinvesting profit doesn't make you not profitable, it just means you've decided to grow with your profit rather than extract it. Amazon doesn't have small profits, they've just plowed their money into growth.
Re:Verizon closes $4.5B acquisition of Yahoo, Marissa Mayer ...
by Bakary on Wednesday June 14, 2017 @12:18PM
(#14553767)
You're confusing profit with revenue. By definition Awazon will have small profits if they put most of their revenue into growth.
Re:Verizon closes $4.5B acquisition of Yahoo, Marissa Mayer ...
by gnaritas on Thursday June 15, 2017 @07:19PM
(#14565302)
No, I'm not confusing anything. What they're putting into growth are undeclared profits, that's a simple fact. When a business subtracts the cost of doing business from revenue, the remainder is profit, regardless of whether that profit is declared as such or whether it's put back into the business to grow it and thus avoid taxation. They could not "grow" if there weren't any profit left over after costs, just because you don't declare taxable profit doesn't mean you didn't have profits.