Re:If Steve Ballmer Ran Apple
by kalininalex on Sunday August 25, 2013 @07:04PM
(#6274140)
Amazon has been operating at near breakeven point for a long time. Most of the years the make some money, sometimes they lose a bit.
Their stock holds up because they increase their revenue, and market share, at a huge speed. This is reasonable. In fact, that's what most startup companies do after raising Series A, B, C, etc. funding - they usually spend a lot more than they make (i.e. "burn" cash) with the goal to grow the market share as quickly as possible. Amazon is a public company with significant cashflows, so they use internal funds to grow.
Here're the latest approximate revenue/profits number from Amazon (all in billion):
2007: $14 / $0.5
2008: $19 / $0.6
2009: $24 / $0.9
2010: $34 / $1.1
2011: $48 / $0.6
2012: $61 / $(0.04) (loss of $40 million)
This is a very impressive growth (in revenue) for a large company. Having said that, one day it will stop, so by then Amazon will need to show impressive earnings, or its stock may get punished.
Their stock holds up because they increase their revenue, and market share, at a huge speed. This is reasonable. In fact, that's what most startup companies do after raising Series A, B, C, etc. funding - they usually spend a lot more than they make (i.e. "burn" cash) with the goal to grow the market share as quickly as possible. Amazon is a public company with significant cashflows, so they use internal funds to grow.
Here're the latest approximate revenue/profits number from Amazon (all in billion):
2007: $14 / $0.5
2008: $19 / $0.6
2009: $24 / $0.9
2010: $34 / $1.1
2011: $48 / $0.6
2012: $61 / $(0.04) (loss of $40 million)
This is a very impressive growth (in revenue) for a large company. Having said that, one day it will stop, so by then Amazon will need to show impressive earnings, or its stock may get punished.