Quote:
Originally Posted by SteveEisenberg
Yes. Amazon shows it is possible to put people over profits. Personally, I think they could worry more about the people who work for them, but the general principle of people over profits seems to work here.
If Amazon gets to a point where is has to make money, I suppose it could jettison whatever parts of its business lose money ( this?) and thus goose profits for a couple years. |
It isn't even a case of people over profits, it is growth over profits and reinvesting what would otherwise be profit to fuel more growth has always been the way they worked as it keeps their tax liability to a minimum.
If investors ever did get vociferous enough about a lack of profits then they wouldn't need to sell anything off either, just increase their margins by a tiny amount that wouldn't harm sales but would instantly result in a profit.
Another thing to bear in mind with their focus on growth, they probably have one eye on alibaba which actually has a higher valuation than them and would presumably intend to expand further outward from its chinese base in time.