Amazon Makes a Profit 311
sofar writes: "Amazon finally makes a profit. Well, only $ 5mln, but maybe you can actually earn something on your stock now. At 1c a share it's no pension fund in Florida yet." I wonder how much of that profit represents 1-click licensing fees.
Ladies and Gentlemen... (Score:3, Funny)
Re:Ladies and Gentlemen... (Score:5, Funny)
All it took was some good old common sense. Stop spending money you don't have. Price-cut, but don't price-cut to the point that you knock your company out. Lay off the cheap sock-puppet gimmicks.
The analysts are wrong: it is a new economy. It's just that the same old rules still apply.
Re:Lack of Internet growth scary? (Score:4, Insightful)
I've been into computers long before the Internet became popular, and I've invested far too much time and effort in this field to just give up on it because of a digital version of the California gold rush.
As long as those of us truly interested in and dedicated to I.T. stick out these "knee-jerk reaction" times, I think things will get back on track sooner, rather than later.
It's the big investors who got burned on the dot-com fiasco, so of course they're the ones out there now proclaiming that "The new economy didn't exist!" and "The next 10 years of the stock market will be driven by industry, brick-and-mortar stores, and traditional service providers." In their minds, it's the only outcome they're comfortable seeing.
The fact is, the Internet is growing up. We're quickly moving from the "wild, wild west" of Cyberspace to a more governed and commercialized space, where the "real world" reaches out and hangs a virtual hat. This also means that after the fallout from the craziness ends, we probably won't see fast growth like we used to see. Instead, we'll see small profits here and there, and a lot of failed commercial sites - paralleling the real business world.
Although I used to criticize Amazon.com for "dabbling" too much (seemed like Bezos wanted to sell everything under the sun, until of course, a particular item didn't pan out so well for him), I think his persistence at selling his core line of products (books and media) is starting to pan out.
Re:Ladies and Gentlemen... (Score:2, Insightful)
Hopefully we will now see the VC's been prepared to fund new start-up's which:
a: Have a real/realistic business case for generating revenue and growth.
b: That have realistic timescales to achive these targets.
Slowly, just slowly I believe that we are emerging from the dot-com mania fall out and returning to a more ratonal age for the perception of web based business based on business fundamentals.
Isn't this... (Score:2, Redundant)
Like AOL/TW suing, say, Microsoft?
Oh, wait...
What to do with the riches? (Score:4, Funny)
No, but I hear Enron is looking for buyers.
Congratulations! (Score:5, Funny)
Re:Congratulations! (Score:2, Funny)
Re:Congratulations! (Score:2, Interesting)
Re:Congratulations! (Score:2, Interesting)
Given 5 billion dollars and a 3% interest bearing bank account, there would be _no_ impact on a local economy.
Re:Congratulations! (Score:2, Interesting)
Re:Congratulations! (Score:2)
Apparently they don't have form letters to handle it.
Yeah. I just received a "Loan Rejected" form letter, but they had to scribble out "Loan" and write "Deposit" in by hand. Apparently they haven't pre-printed the proper form letters.
-
Great! (Score:2)
Re:Great! (Score:5, Insightful)
Agreed.
As much as I hate about their one-click patent, Amazon is best place for books and other stuffs. Their recommendation feature is excellent. I found out a lot of authors that I would have known otherwise. And the service is first class. If only other companies would care so much about service quality too....
Sure, Amazon has been losing tons of money, but you have to give credit to the company for very good forcast of their target. They have been very good at being on the mark in the past.
Now, if Jeff Bezos commits to more consistent customer privacy policy, I would be a really happy customer (and shareholder too).
Re:Great! (Score:2, Interesting)
I shop at Amazon, I recommend Amazon to friends and family because they are certainly best of breed.
Congrats, Mr Bezos. BTW, how long does it take to get from your office to the loading dock on your new Segway?
What do you give up for good book service? (Score:4, Interesting)
Just my view.
Re:What do you give up for good book service? (Score:2)
Re:What do you give up for good book service? (Score:2, Interesting)
I'm not saying Amazon's a saint, but before you denouce them, look at what some of the stores you frequent participate in.
Good to see--with reservations (Score:2)
I just hope they didn't earn a profit from selling customer data, the infamous 1-click patent, and all the other dirty tricks.
Re:Dot-com model? (Score:2, Funny)
Maybe I'm older than the average slashdotter, but I still thought '64K single segment' when I saw
[I know it's from CP/M and VMS before that...]
Jaded? (Score:5, Funny)
Jaded? Party of one? Your table's ready...
Re:Jaded? (Score:2)
Porn (Score:5, Informative)
Re:Porn (Score:5, Interesting)
The latest issue of Wired has an interesting article on just how hard it is to make money selling porn on the Internet. The market is saturated, so new-comers are pretty much shut out.
Even the old dogs are having a difficult time making money. When sites like drbizzaro.com and its partners give away so much product for free, you have to offer a pretty compelling product, or cater to a very specific niche to make money.
Re:Porn (Score:5, Funny)
That sound you hear is the drbizzaro.com web server exploding into a gazillion pieces.
Re:Porn (Score:2)
oh please (Score:5, Insightful)
Re:oh please (Score:2)
Re:oh please (Score:2)
Anyway, last time I checked the company was actually ditching many of its non core product lines because they weren't profitable.
Re:oh please (Score:2)
Ironically, the $5mil can be traced back to surprisingly strong sales of "How To Find A Job In A Struggling Economy... For Dummies!"
Re:oh please (Score:2, Informative)
Jeez
Re:oh please (Score:2, Informative)
By "generally accepted accounting principles" they still lost $millions this quarter.
What was that you were saying about reading the press releases closely? "Amazon reported net income of $5 million, or a penny a share, under generally accepted accounting principles, well ahead of analysts' expectations."
Sheesh, dude, it's only the first line of the article. It says that analysts expected Amazon to report profit on a pro-forma basis, but they surprised everyone by using GAAP.
Re:oh please (Score:2)
This just proves what they say, "If you want the
real story, just post something wrong to
Usenet^H^H^H^H^H^HSlashdot, and wait for the
corrections to roll in."
Darn... (Score:4, Funny)
Re:Darn... (Score:3, Funny)
Hell freezing over? (Score:4, Insightful)
Or all we all just amazed that at least one DotCom company had a solid business plan, stuck with it, and now has something to show for it?
Re:Hell freezing over? (Score:2)
Re:Hell freezing over? (Score:2)
Re:Hell freezing over? (Score:2)
~z
Something to keep in mind (Score:5, Interesting)
In addition to raising money through sale of stock, Amazon has also raised money by selling bonds. Lots of bonds. The ammount of securities debt Amazon is carrying is far more than the total value of the company.
Now for the fun bit: when push comes to shove, bondholders get paid before stockholders. Always. The people who loaned the company will get paid back before the people who bought part of it. Now it's worth noting that the securities amazon.com has issued are trading at very low rates. They're junk bonds. The market thinks there's a good chance that Amazon will not be able to cover the interest payments on those bonds in the long term. If that happens, the shareholders get $0.00 from any sale of assets.
This makes Amazon.com a risky buy. Not as bad as VA Software, (people find Amazon's services useful afterall) but still risky.
--Shoeboy
Re:Something to keep in mind (Score:2)
Re:Something to keep in mind (Score:3, Insightful)
Just because Amazon has a substantial amount of debt does not really mean all that much. Assuming that they remain profitable and cash flow positive, Amazon could well continue as the preemminent electronic commerce company for a very long time. The current market conditions have created substantial barriers to entry for new competition.
I am not saying that Amazon is a sure thing as a company, they have some rather creative accounting among other things that could spoil the party. As a growth stock it should have more risk than more slowly growing companies like Nordstrom or Federated Department Stores. At the same time, the company has consistantly achieved success against great odds and remained out of chapter 11, even as more established enterprises like K-Mart, Montgomery Ward or even Enron have hit hard times.
If you want to avoid all risk, you should probably stick with treasury bills.
Re:Something to keep in mind (Score:2, Informative)
The debt is accounted for in the "value" of the company's stock and, therefore, the value of the company. Remember, the debt raised is used to finance assets...it is not raised for nothing. It could be easily argued that the burden imposed on profitability by the amount of interest repayments made each year is more important than the nominal amount of debt on the balance sheet.
Now for the fun bit: when push comes to shove, bondholders get paid before stockholders
Erm...of course they do. Stockholder = owner. You are implying that a business owner may borrow money, and when things go wrong he should get the cost of his investment back before he repays external creditors. For example...I buy a store for $100 and borrow a further $100 from the bank to purchase inventory etc. Business is bad, inventory devalues, and my business fails. You think I should get my $100 back before the bank gets theirs? Obviously not.
the securities amazon.com has issued are trading at very low rates
The "rates" paid on bonds are, as someone else pointed out, related to the perceived risk in owning the bonds. If I were to choose to invest in a risky company, I would expect a higher rate of interest to compensate me for assuming a higher degree of risk. Alternatively, I could invest in a more financially stable company and get a smaller return.
The market thinks there's a good chance that Amazon will not be able to cover the interest payments on those bonds in the long term...This makes Amazon.com a risky buy
Risk is relative. Risk = uncertainty/volatility of financial return (amongst other definitions). And if the market as a whole thought that there was a realistic chance that Amazon couldn't service debt going forward, the company's stock would be worth basically nothing. There will be winners amongst the dot coms; Amazon is more than likely to be one of them.
Ah, another speculator (Score:3, Insightful)
However, there are still a few people out there who actually look at company earnings and (wait for it...) dividends before buying a stock. If you've got a few spare bucks you want to gamble with, being one of these "investors" may not sound like fun, but people playing with their retirement funds might want to give it a try.
Re:Something to keep in mind (Score:2)
--John Maynard Keynes
Linux saves Amazon (Score:5, Interesting)
Re:Linux saves Amazon (Score:2)
Re:Linux saves Amazon (Score:2)
"Profit" in the loosest sense of the word (Score:4, Interesting)
If I spend $10 billion on a factory one year, and make $5 million the next year after operating expenses, am I profitable? No way. Not until the $10 billion factory is paid for.
There was also few details given about the expense exclusions that have likely been included in the calculation. Let's see what the SEC filings have to say (they're not out yet).
And even still, a $5 million profit on a $10 billion+ investment is a pretty lousy return (rate = 0.05%).
A factory is a capital expenditure... (Score:4, Informative)
Why? The factory is worth $10 billion dollars. Amazon could sell it if they had to. Then the factory depreciates over time and that's when the company can expense it.
I agree that this is a shitty return, but there's a big difference between spending $10 billion on a factory and $10 billion on programmers salaries.
Not paying attention? (Score:2)
While they did spend a lot on advertising, they also bought very expensive sorting machines for thier warehouses. The efficency of that machine is what let them hire fewer workers and in turn make a profit - they don't just have big expensive warehouses, they also have a massive sorting machine and a great process for getting things shipped quickly that would probably be an intangible asset worth quite a lot apart from the physical assets.
As for the profit being sustainable, they noted in same article that they think they can double output from those warehouses using the same amount of labor. It seems like at the moment Amazon will turn into the most efficient game in town for turning around web based orders, which in turn should help it stay competitive.
I know I use Amazon for almost all my movie/CD/book shopping (Ok, sometimes I use FatBrain). Sure, I can save a few dollars on average here or there but what I have learned from experience is that Amazon is a lot more likley to have stuff well packed and arrive to me in good shape. Witness buy.com who has a number of times sent a few CD's loose in a box with one air cell thrown in as an afterthought!
Our postal workers are Good Americans(tm) (Score:2)
Our postal workers are good Americans(tm). When they go postal, they use shotguns, like any True American(tm) would. Uzis are for pussies.
:-)
In all seriousness, the professionalism of our postal workers during the Anthrax scare was nothing short of inspiring, and very surprising given all the bad press (and bad events) that have happened over the years, resulting in the phrase "going postal" becoming equivelent to "running amok." A lot of us (myself included) would probably not be inclined to stay at their job and continue working day in and day out with that sort of direct threat hanging over our heads, yet these folks did so, for weeks on end, without missing a beat (at least here in Chicago).
Still, it seems to be more fun to joke about postal workers running amok than high school students, probably because the latter tend to do it a lot more often these days, and not least because we (especially we Americans) love to take the piss out of anyone in uniform.
Re:"Profit" in the loosest sense of the word (Score:2)
quantnum theory (Score:2, Interesting)
This is interesting ... (Score:2)
From the article:
Not sure exactly what the "services" are (like everyone else, I hope it's not 1-click licenses) but this pretty much confirms what my gut told me: Amazon is good at selling books and media, but really lousy at selling everything else. I really hope that they realize this and get out of the TV's-and-lawn-chairs business. They're still a great place to buy books, but I've never bought anything bigger than about 1 cubic foot from them, and I'm pretty sure I never will.
Re:This is interesting ... (Score:2)
why does everyone say this? I can get equal pricing at most book stores, get the book that day, and if there is a problem(not likely) I can get it taken care of that same day?
The one thing that makes amazon something I would consider is that I can hace gifts deliverd right from them.
of course, since there 1-click patent I don't buy anything from them, but I still don't see anything that cost+shippping is better then any number of bookstores around my home.
Re:This is interesting ... (Score:3, Interesting)
Walking into any of the various Chapters/Indigo brick & mortar stores is totally pointless unless you're looking for the latest bestseller or Oprah recommendation (and note how many acres of space are devoted to selling candles, picture frames and other crap like that). Interestingly while they do have quite some selection, the 'best books' in every department seem to always be out of stock, and never replenished, while all the other non-selling crap obviously remains on the shelves.
Ordering online from Chapters/Indigo is even worse, most things I am interested in seem to be always on 3-6 weeks shipping, while Amazon has ALWAYS, ALWAYS, ALWAYS had EVERYTHING I wanted on '24 hours' shipping (and it *did* ship in 24 hours).
I also remember once ordering a book in a brick & mortar Chapters store, being quoted '2 months' and after about 1 *year* being told that the book went out of print in the meantime (and yes, I kept going there every other week to ask what was going on). Same thing happened trying to order an import CD from the Virgin megastore: they got all my data, told me 3 weeks, it's been 2 years and they still haven't gotten back to me...
While ordering from Amazon is expensive for us Canadians (shipping ain't cheap, and 3 times out of 4 I get to pay duty/GST and PST on the things) it is really the only option if you really want something in a reasonable time frame.
Now if only Amazon shipped *everything* to Canada (most/all toys/electronics/power tools/etc. are US-only) it would be even better, not to mention if they slashed the really expensive shipping charges on paperbacks...
Re:This is interesting ... (Score:2)
Re:This is interesting ... (Score:2)
Hmm, is Ebay profitable? (do they take a certain % of each sale or something? How does Ebay make their profit? I know that Half.com takes like 10% of each exchange or something)
Amazon DOES have a good selection though, and their prices are equal to major bookstore chains even after shipping (which is all that their 'discount' about pays for, heh, either that or look at is as sales tax removal, depending on your state though. . . .
Being able to get older books in a series is also nice though, especialy since the larger chains typicaly only stock random bits and pieces of older books in a series, and sometimes I just don't want to wade through tons of old science fiction book stores.
For that matter that is one of the reasons that I really do not use amazon.com all that much, I just enjoy wading through piles of books, hehe.
There is a book store in the Pike Place Market (Google it folks) that specalizes in old Science Fiction books and magazines, hehe, yah they cost a pretty penny (its painful paying $10 for a book that has "Only 25 cents!!!" on its original cover artwork but. . . hehe. They are worth it.
(well, at least those ones that aren't behind lock and key, heh)
Re:This is interesting ... (Score:2, Informative)
Yes, they had a profit of $90.4 million [etrade.com] last year.
do they take a certain % of each sale or something?
Yes, among other things [ebay.com]
Re:This is interesting ... (Score:2)
If they have multiple server storage facilities then you are talking 5-10 admins per network minimum, and since the data that they are handling is so valuable they also likely have 2-4 security operators at each site as well (in fact I wouldn't be surprised, though I would sure as hell hope that it is so, if they have at least a few people on a 24/7 security watch).
Then there are the people who just rove e-bay looking for illicit auctions to close (Hey, no body organs allowed!) and based on how fast Ebay is closing down such auctions now days, they must have quite a staff.
Don't forget web page designers working on any n ew sections of their site, and so forth. Market researchers (what market should we expand into next. . .
Ebay also runs half.com (great service) and likely needs admins for that network too (since uptime is a must for them and every second they go out is alot of lost profits, they likely have seperate admins for their different main sites.)
Ebay.co.uk also likely has its own set of admins and such. And customer service.
And then their billpoint service needs admins and security personel (ALOT of $$$ involved there.
They seem to be constantly adding new features to their service so at least a few programmers are likely employeed there. You want your admins on the job full time keeping the site up, in this case where time = ($^2) it is worth the extra personel cost.
Add internal tech support for all of those people (If your site has just been hacked you don't want your admins to go have to pause and go install a new toner cartridge for the secritary) and of course a HUGE bean counter depository (man I bet their yearly IRS forms are a PAIN to fill out!).
Then add a manager per each employee and another manager per each 3 managers below him. . . and so forth on up for quite a few levels until you eventualy get to a board of directors and CEO and such.
They probebly could trim
My reaction to this... (Score:2, Funny)
[scene: MS techie in moon suit, facing the perfect home for a new evil AI (in other words, an Arnold Shwartzenegger-type guy)]
MS Techie:[thinking] How do I knock this guy out? He's positively huge. I don't even think a mallet would do him in.
*thinks*
Techie: I heard Amazon.com actually turned a profit this quarter.
*whoomp* [Arnold faints]
Techie:[thinking] Lies and damned lies...
Re:Thanks! (Score:2)
Re:Thanks! (Score:2)
The Unneccesarily Long Road to Profitability (Score:5, Interesting)
Re:The Unneccesarily Long Road to Profitability (Score:2, Funny)
So...
damn is too offensive, so you *** it out, but fucking is okay?
wish they'd stop making those damn condo
No, damn is fine too.
Have you been smoking the crack again?
the internet is starting to work (Score:3, Insightful)
Amazon's Future (Score:4, Interesting)
It talks about Amazon making its way to open real stores and even let customers order online and pick up their purchases at stores like Circuit City to save on shipping. Amazon has started working with its competitors by providing them with services instead of competing. Amazon is also going to provide e-commerce services to AOL subscribers starting next year.
Re:Amazon's Future (Score:2)
That makes a lot of sense. Just as "the last mile" is a problem for broadband, it's also a problem for online retailers. The difference is that most people already own the necessary infrastructure--their cars and some spare time.
If the "buy online, pickup at the store" model takes hold, this has all kinds of implications for the way distribution works, and what a retailer actually does. For one thing, it cuts into the revenue stream for delivery companies like UPS, who've been getting a shot in the arm from online retailing.
I think this is the way things will eventually go. Shipping everything right to your door via UPS isn't efficient. Economic darwinism will ultimately scale that market back so that only those who truly want that convenience will pay for it.
Re:Amazon's Future (Score:2)
Booksense [booksense.com] (an association of independent bookstores) pioneered this over a year ago. (As well as a bunch of other cool features like gift certificates buyable online and redeemable online or inperson across the country.)
Used Items (Score:2, Insightful)
Great, except that this company is in a defecit (Score:5, Informative)
But the big "straight numbers" problem with Amazon can be illustrated as follows:
Quarter ending December 31, 2001
Total assets $ 1,637,547,000
- Total liabilities 3,077,547,000
= Total stockholders' deficit ($1,440,000,000)
Quarter ending Sep 30, 2001
Total Assets $1,346,368,000
- Total Liabilities $2,800,362,000
= Total Stockholder Equity ($1,453,994,000)
Would you pay $4.6B (about its current total market price) for a company that continues to be worth around $-1.4B? Take note that I am not accounting for "hope" and "prospects" here.
If they double, triple, or even quantuple this quarter's $5M take, it will be a long time before Amazon.com can justify the enormous chasm between debt and assets. Amazon.com must have some seriously bright prospects to justify their market cap!
The above fiancial data [yahoo.com] is based on SEC filings and is from the quarter ending Sep 30, 2001 and today's press release [yahoo.com] from Amazon.com.
Bill Gates should buy Amazon out (Score:3, Insightful)
While Microsoft doesn't appear to want to get into the retail market what-so-ever, Amazon would make a great outlet for their gear.
Bill Gates wouldn't buy a Linux shop, but IBM? (Score:2)
It's basically a lose-lose situation for Bill Gates.
For IBM, it could be interesting to invest in/run Amazon. They are putting a lot of effort and resources into Linux, and it would be nice to show to the world how Linux can be a good foundation for a profitable business.
I doubt they will actually run it, but perhaps they could offer to deal with the technical stuff? It could certainly be valuable experience for all parties.
Re:Great, except that this company is in a defecit (Score:3, Insightful)
You're still taking a gamble that revenue growth will continue, but that seems a reasonable gamble - not an outrageous overvaluation.
All IMO, IANAL, etc.
two important points to take from this ... (Score:3, Funny)
1) amazon appear to have made a profit without anyone (or me at least) every receiving any spam from them (sure, i get occasional mailing list stuff, but i signed up for that when i created my account with them)
2) the news link in the article has what may be the worlds first html anchor of the phrase "pooh-poohed"
Re:two important points to take from this ... (Score:2)
Admittedly, this was more than four years ago, and when I started buying from them again recently, I did not receive anything beyond a few ads from Amazon itself. But then again, I didn't bother giving out munged addresses this time, so I can't tell if they're still selling addresses or not.
some kind words for Amazon (Score:5, Interesting)
It's been mentioned how helpful Amazon is for those who don't live in an urban center.
What is more notable is how many small presses Amazon has saved. It has given "shelf space" to small/speciality presses who couldn't get the back dusty corner in a mall store. Some time back, more than a year, I remember reading an article which contrasted Amazon's sales with typical brick & morter bookstores. B&M's sales are 80% best sellers, 20% "others". Amazon's sales were the reverse. Good for small presses, non-mainstream writers, & folks who don't live near specialty bookstores.
amazon has a *VERY NICE* web site.... (Score:3, Interesting)
Sure they are not darling red-hat (one click patent and all), but they run a decent web site.
Re:amazon has a *VERY NICE* web site.... (Score:2)
Yep, I absolutely love their website, and use it to research all sorts of things before I buy.
Mind you I don't actually buy anything from them (that whole thing about them telling me they'll be selling my personal info to others, just not sitting well), but I do use their website alot.
1-Click? 1-Schmick! Linux == $5m (Score:2)
None, I'd venture. If you measure the savings made by Amazon migrating (flocking might be a better word) to Linux, you'd more than equal $5m.
Have a nice dividend (snigger).
Google, too (Score:5, Interesting)
Since my article on Google's profit was rejected yesterday I can only assume Slashdot editors only care about the performance of dotcom companies they own stock in.
Re:Google, too (Score:2)
But it's only Pro Forma! (Score:2, Informative)
Please, check the footnotes...
wait for the full year results (Score:2)
Amazon has had a habit in the past of basically moving costs out of the last quarter of the year into other quarters, so their "Christmas" quarter always looks great (though this one looks a shedload better than their year-ago, that's for sure).
Maybe somebody who owns the stock and actually pays attention to the financial statements (i.e., you didn't buy it at $140/share and are stuck with it now) can research this?
Also pay attention to their HUGE debt. Poor debt management can kill a company, like KMart which filed bankruptcy today.
Although I don't like Amazon because of the patents and the fact that Jeff Bezos is a clown (okay a little ad-hominem there, but making him man of the year was an embarrasment to Time magazine if you ask me), I'd hope they succeed because I love reading their great reviews before buying CDs and books from Barnes and Noble. :-)
Just one comment to make... (Score:2, Funny)
Three years later...
Profit, yes, but what kind ? (Score:2, Insightful)
I'm happy for the supposed turn for the better Amazon.com is experiencing, as much as I am for any bellweather Dot.Com. I'm just not sure I'd want to invest in them personally.
Re:Profit, yes, but what kind ? (Score:2)
Seattle Times: Or, analysts expect pro-forma accounting.
News.com: Or, the analysts were wrong, they used generally accepted accounting principles.
So the news here is that they not only made a profit, but did so by fudging the numbers no more than any normal accountant would.
-transiit
Amazon's Accounting Practices (Score:2, Funny)
And I just managed to get a date... (Score:2)
Books, books, books! ... and some software (Score:3, Insightful)
I don't know if Amazon is going to change the world as a retailer, but it has changed the way everyone buys books. Even if you don't buy directly from Amazon, people will often look at the online reviews and than going check out the book in more detail at B&N or Borders.
I believe software is somewhat the same-though I generally don't buy a lot of MS stuff, when I do I check the reviews at Amazon. These are the sort of things where Amazon has developed a really good business model.
If it every does go bankrupt, I expect that they'll just shed all the extra stuff and pair back to light and information oriented items like books and software, they can always make money and they already have volume.
Re:Not really an accurate measurement (Score:2)
Excluding those expenses, the e-tailer's pro forma profits topped estimates handily, reaching $35 million, or 9 cents a share. According to First Call, Amazon was expected to lose 7 cents a share, excluding goodwill, on sales of $1.01 billion.
Incorrect (Score:2, Interesting)
Re:Not really an accurate measurement (Score:3, Redundant)
Re:Not really a profit (Score:4, Informative)
CORRECTION: No Funny Account (Score:2)
Amazon didn't even have to resort to controversial pro forma accounting methods. It posted a net profit of $5 million, or 1 cent a share, for the quarter, using standard accounting methods.
Re:Amaron? (Score:4, Interesting)
where do you think amazon.com GETS its rare books from?
Yup.
Independent book sellers! (says so on their page, no idea how reliable that is. ^_^ )
Kinda hard to find alot of those old books therwise, hehe.
Re:The Matrix (Score:2)
The Matrix was cool and everything, but that whole "human battery" idea is just plain stupid. It's gotta be the least efficient method of getting energy one can think of, plus the most absurdly convoluted way of going about it.
Besides, it'd be a lot cheaper for them to build a few fusion reactors here and there, than to pay AOL-TimeWarner-Microsoft-Vivendi (face it, it's the future) licensing fees for the Matrix content and software. Can you imagine the monthly bills for MS Matrix Enterprise Edition with a few billion "seats"? And they probably don't sell too much ad space, so the programming/content costs would be astronomical.
Yeah, yeah, off topic - how bloody interesting is Amazon.com, anyway? Oh, ok - real shame about that Amazon.com profit! There, its on topic - happy now?
Re: eBay (Score:3, Insightful)
(If you're making lots of cash, you don't want to settle for someone's used stuff. When money is tight or future money is unsure, those cheaper used items start to look like real good options.)
As for other sites like Amazon not benefiting like eBay is - that's really a no-brainer too.
eBay got into the game "early and often". They attained a critical mass of regular buyers and sellers. For a while, I used both eBay and Amazon auctions - but I gave up on Amazon auctions as they just weren't worth my listing fees anymore. (For every 1 item I'd successfully sell there, I'd sell 3 or 4 on eBay - and usually for higher bids.) You have to go where the "eyeballs" are when you want to sell. That starts a chain reaction, since the buyers want to go where the most items are to bid on.
Amazon never really pushed hard enough to win back the users migrating to eBay auctions. I think they had (maybe still have?) a chance to do it because they're another well-recognized Internet name. They'd need to take a loss for a while though, like offer all listings free for 9 months or so, and advertise it in magazines, etc.
Then, they'd also have to ensure they offered every single feature eBay does (dutch auctions, non-paying bidder alerts, easy online payment system, etc. etc.) if they want to keep those people.
Re:Dog with Flees (Score:2)