Quote:
Originally Posted by ProfCrash
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"It ploughs its profits into price cuts and innovation rather than putting them in the hands of its investors."
All figures I've seen from Amazon so far clearly indicate tiny margins.
They clearly opt for market share before short-term profits.
So, in my opinion, it's the other way around. They don't plough their profits into price cuts. They need the price cuts to get some minor margin at all.
Question to me really is, how long they can survive with minimum margin and at what stage they have to deliver shareholder value. Same is true for Facebook and the likes, of course.
BTW: Personally, I'm a fan of Amazon's business model, whereas I can't see any business model at all in Facebook.
