Quote:
Originally Posted by ottdmk
(They don't want to make any PROFIT, but they do want to make the most money possible.)
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That is not correct,
Amazon makes tons of profit from their sales operations. And they *want* to makes as much profit from sales, if nothing else to provide funding for their investments.
(Think of Amazon as a Venture Capital fund that is powered by retail profits.)
They do not *report* taxable revenue because they rollover the profits into acquiring non-taxable assets. That is why Amazon's stock price is more tightly linked to their free cash flow than their reported net.
Trying to create a distinction between Amazon and BPH interests (which are somewhat but not totally different) as a lack of desire for profit is not valid because *both* want to maximize profit.
The division is because Amazon's position is that *everybody* makes more *total* profit with sweet spot pricing whereas the BPHs believe that it is more important to maximize per-unit *gross* profit even if it results in lower total *net* profit for everybody in the chain.