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Amazon Remains Focused on Long-Term Growth

July 29, 2013


Amazon reported a $7 million loss for the second quarter of 2013, as the company continues to sacrifice short-terms profits in favor of long-term growth.

In the past three months, the Seattle-based e-commerce giant invested heavily into warehouses, digital content and its Kindle business and subsequently reported a minor loss despite healthy revenue growth. The company posted net revenue of $15.7 billion, a 22 percent increase over last year’s second quarter.

The results were just below what analysts had expected, but the stock price gave in only slightly following the release.

Amazon’s shareholders remain remarkably trustful of CEO Jeff Bezos’ long-term vision. Despite the lack of profits, the company is currently traded at a valuation of almost $140 billion, putting Amazon’s price-to-earnings ratio at outer worldly levels. 

Our chart illustrates how Amazon’s revenue continues to soar, while the company fluctuates between miniscule losses and small profits.


From → business, Strategy

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