WHY AMAZON HAS NO PROFITS AND EVERYTHING YOU NEED TO KNOW ABOUT AMAZON

business&innovation

Jeff Bezos (CEO Amazon) is building a company, with all the cash he can to capture a larger and larger share of the future of commerce. It’s been 20 years that Amazon has been taking losses in oder to grow fast. Last week Bezos declared the biggest quarterly lost in 14 years and Amazon stock fell by 11%. Is this the moment when investors loose patience?

Some interesting analyses about the Amazon business have recently been published by Benedict Evans (Partner at Silicon Valley Star Investor Andreessen Horowitz). In the a16z podcast, Evans explains how Amazon works (above) and in a blogpost he talks numbers and shows easy to understand fact graphics.

WHY AMAZON HAS NO PROFITS (AND WHY IT WORKS).

By Benedict Evans

Amazon has a tendency to polarize people. On one hand, there is the ruthless, relentless, ferociously efficient company that’s building the Sears Roebuck of the 21st Century. But on the other, there is the fact that almost 20 years after it was launched, it has yet to report a meaningful profit.  read the whole article here.

 

By Magnus Busch