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ECT News Community   »   E-Commerce Times Talkback   »   Re: Amazon Delivers on Profit Promise, Breaks $1B Barrier



Re: Amazon Delivers on Profit Promise, Breaks $1B Barrier
Posted by: Keith Regan 2002-01-22 11:18:50
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Bellwether e-tailer Amazon.com delivered its first-ever profit when it reported
fourth-quarter earnings, as international growth propelled it past the US$1 billion sales
mark for the first time. "The big question now is how much they can re-accelerate their
top line and how big they can become," Morningstar.com stock analyst David Kathman told
the E-Commerce Times.


Re: Amazon Delivers on Profit Promise, Breaks $1B Barrier
Posted by: davidport 2002-01-24 08:10:52 In reply to: Keith Regan
Even though they've earned a small operating profit, since Return on Investment = Profit Margin x Asset Turnover; and since "sales" is integral to both factors [(Net income Sales) x (Sales their cost of assets)], I'd like to suggest that Amazon can't really be profitable until their sales become significant enough to cover the enormous cost of their assets.

So how might that happen? By overcoming the missing function of stores. In other words, because conventional stores "store", buyers and sellers can access that storage to efficiently exchange goods. However, since no comparable means of storage exists outside of consumers' locked homes, most folks won't risk ordering in the first place.


Re: Amazon Delivers on Profit Promise, Breaks $1B Barrier
Posted by: MoeMantha 2002-01-22 11:32:28 In reply to: Keith Regan
I just can't help it, I get giddy over Amazon.

Re: Amazon Delivers on Profit Promise, Breaks $1B Barrier
Posted by: kathleen.mccahill 2002-01-22 13:47:17 In reply to: MoeMantha
I get giddy, too, because amazon is a great online bookstore. i worry about them getting too large and hope to hell that arthur andersen is not their accounting firm.
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