News for hackers. Stuff that matters.

A comment on Why Amazon Has No Profits and Why It Works. Parent comment

Re:Why Amazon Has No Profits and Why It Works by vasilipupkin on Friday September 05, 2014 @02:43PM (#8275567)
your comment is at best a gross exaggeration. They are making money, but they are re-investing that money at a crazy rate into new businesses. That represents a huge bet, which their shareholders are willing to take on. The alternative would be to pay out cashflow from operations to shareholders in the form of dividends, or grow slower. But look at the stock price over the last 5 years - clearly, investors want to take on the bet
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by jamestimmins on Friday September 05, 2014 @06:10PM (#8276579)
Makes me think of Peter Thiel's line: "we like to invest in businesses that aren't making a profit, because they know what to do with their money". Businesses that are paying back profits via dividends/buybacks are communicating that they have more money than they know what to do with (at least Thiel would say so).
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by dinkumthinkum on Friday September 05, 2014 @11:07PM (#8277351)
Some business are simply motivated by profit rather than making headlines with mercurial statements on TechCrunch.
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by cthalupa on Tuesday September 09, 2014 @03:01AM (#8289056)
Considering Thiel's net worth of 1.5billion, I imagine he's motivated by making a profit as well.
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by vasilipupkin on Friday September 05, 2014 @02:46PM (#8275585)
Curious about the downvote. "spin it any way you want but they are not making money" is incorrect.
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by marincounty on Friday September 05, 2014 @04:27PM (#8276109)
I too am curios about the down voting, but this site is sometimes so polarized, or stifling with political correctness it's nauseating.

Jeff Bezos can do no wrong in this market place; that is where we have a somewhat growing marketplace for certain professions. Professions that provide a livable wage, with a few dollars left over after rent in order to spend on Amazon.

Besides Jeff's vanity projects(newspaper, drones, I don't fell like doing a bunch of research)--his business model has one glaring flaw. He needs cheap gas. There is good reason why have huge trucks that move a large amount of goods from one location to a more convenient location. Don't get me wrong I like Amazon. I am surprised he hasen't bought up some of the dirt cheap commercial Realestate and put in Amazon retail outlets. Outlets that just provide a place where customers could pick up their packages. Hell--he could automate them, and they could be open 27/7?

[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by morgante on Friday September 05, 2014 @05:16PM (#8276347)
> Outlets that just provide a place where customers could pick up their packages. Hell--he could automate them, and they could be open 27/7?

http://www.amazon.com/gp/help/customer/display.html?nodeId=2...

[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by larrys on Friday September 05, 2014 @05:14PM (#8276339)
There is a saying "ask 10 doctors or lawyers get 10 opinions".

Well this is my opinion based on 35 years of business experience and having graduated from an Ivy business school as well. And reading, operating and observing business from before most HN readers were born. In other words not just reading blogs or online comments or whatever. It's a pattern that I've seen. Having seen bullshit of different types previously.

Sure I could be wrong "ask 10 doctors" but I do have a basis for my thoughts.

Edit: Because of course being in business and making a profit for 35 years means nothing to the younger generation on HN.

[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by TTPrograms on Friday September 05, 2014 @08:35PM (#8277007)
https://en.wikipedia.org/wiki/Argument_from_authority
[ Parent | on HN ]
Re:Why Amazon Has No Profits and Why It Works by jgalt212 on Friday September 05, 2014 @03:43PM (#8275903)
Diminishing returns will be Amazon's downfall
[ Parent | on HN ]