"Amazon produced very little in the way of earnings over much of its life, choosing instead to reinvest into the business. While revenues soared, costs grew alongside them. But, how good are Amazon's earnings?
Background
From its humble beginnings taking on the retail book industry, Amazon grew into the behemoth we know today. Jeff Bezos boasts the titles of both CEO and richest person in the world. Over the years, Amazon expanded from a marketplace for just literature, into a company who offers everything from excess cloud computing, Oscar winning movies, to grocery stores.
As the company grew in dominance, costs rose commensurately. For most of its existence, Amazon rarely shows earnings worth mentioning. When the company began to monetize its cloud services, the profits were plowed right back into growth. Investors have so far given the company a wide leash from which to play with. Given these conditions, what can we expect going into their upcoming earnings?"
Read more here.
Background
From its humble beginnings taking on the retail book industry, Amazon grew into the behemoth we know today. Jeff Bezos boasts the titles of both CEO and richest person in the world. Over the years, Amazon expanded from a marketplace for just literature, into a company who offers everything from excess cloud computing, Oscar winning movies, to grocery stores.
As the company grew in dominance, costs rose commensurately. For most of its existence, Amazon rarely shows earnings worth mentioning. When the company began to monetize its cloud services, the profits were plowed right back into growth. Investors have so far given the company a wide leash from which to play with. Given these conditions, what can we expect going into their upcoming earnings?"
Read more here.