I can’t think of another example of a company seeing revenue rise that much while seeing profit fall almost the exact same percentage.
The race is on for Amazon to get to Walmart scale, where margins do not matter. But it’s getting to be a bumpy ride because of things like Amazon’s adventures into hardware.
The company made $13.18 billion in revenue for the quarter, but only $130 million in profit. That’s less than the right side of the revenue decimal point. And the profit continues to go the wrong way.
On the bright side, at least they didn’t actually lose money (as they keep warning they might). Next quarter, they’re projecting anywhere from $40 million in profit to $260 million in loses. Even if they beat the range (which they should), they’ll still be inching closer to $0.
And what happens if Google is actually able to undercut the Kindle Fire in price with their Nexus tablet?
Scale fast. Scale fast. Scale fast.