Amazon’s P/E ratio and business strategy.

Two days ago, I started this post:

=======================

As I mentioned before, Amazon’s business strategy looks like cheating:

  1. Sell product for a loss
  2. Sell a lot of that product
  3. ???
  4. Profit

Amazon lost money for many years.

Their most recent financials show them making 3% profit.

That is not very much.

By comparison, Apple makes ~25% profit (though Apple is on the high side of the spectrum).

=======================

…then, just today, this report came out:

Amazon profits dive

Perhaps I was on to something.

Advertisements

5 comments

  1. You do have a great business mind! It looks like you were right… and just what is Amazon.com? Is there someone behind it? A visionary, like Steve Jobs? Or is it just a computer?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s