Re:Amazon Becomes World’s First Public Company to Lose $1T i...
by crazygringo on Wednesday November 09, 2022 @06:38PM
(#33539789)
They imagine they're buying into a company that will start paying dividends once it stops seeing further areas of massive growth.
But for right now, they're quite content for Amazon to be e.g. reinvesting its profit into things like its own last-mile delivery service, for starters.
Once Amazon becomes more popular than UPS, Kroger, Walgreens, and probably five other companies in their respective markets, then it'll be time to open the dividends tap. But that doing it now would be throwing away money, sacrificing future profit for present.
I'm not saying I do or don't think Amazon is going to succeed in these things, but I do think that is absolutely what people invested in Amazon believe they're buying.
But for right now, they're quite content for Amazon to be e.g. reinvesting its profit into things like its own last-mile delivery service, for starters.
Once Amazon becomes more popular than UPS, Kroger, Walgreens, and probably five other companies in their respective markets, then it'll be time to open the dividends tap. But that doing it now would be throwing away money, sacrificing future profit for present.
I'm not saying I do or don't think Amazon is going to succeed in these things, but I do think that is absolutely what people invested in Amazon believe they're buying.