Glenn, Amzn just had their 5 year anniversary, and so did SI.
>THUMBS DOWN
Amazon.com (NASDAQ: AMZN - Quotes, News, Boards)
Amazon.com, based in Seattle, Washington, offers millions of books, CDs, DVDS, videos, toys, tools, and electronics through its main Web site.
Expansion is propelling the company in many directions; it owns stakes in online sellers of pet supplies, prescription drugs, furniture, groceries, and more. Amazon.com has become a model for Internet companies by putting market share ahead of profits and making acquisitions funded by meteoric market capitalization.
Unfortunately, it is a terrible role model. You would have to be living on Venus (or maybe deep in the Amazon jungle) to think that profits do not matter. PROFITS MATTER. PROFITS MATTER.
Here's a personal message for chief executive Jeff Bezos: Wake up, and start looking at the bottom line because it is a mess.
Amazon has lost $872 million since its inception, which means Bezos does not give a damn about shareholders. Someday, that nonchalance is going to bite him in the butt, when the stock gets crushed and shareholder lawsuits come out of the woodwork faster than Amazon sells books.
Amazon is expected to lose more money this year than last, which does not surprise me. But Amazon will surprise you when it posts a much wider loss than expected. Will the stock tank on the news? I have no idea. I thought it should have tanked a year ago when Bezos said 'forget profits, let's spend money until it hurts.'
Last quarter, Amazon had negative cash flow from operations of $321 million. It lost $198 million from operations. It spent $140 million on marketing and sales. And things are getting worse, not better.
Btw
If Amzn reports less than a .35c loss next week...I might make money. |
