Amazon, the company that “will never make money” surprised Wall Street last week with strong profits and it seems to me that they are going to start producing cash like these other big tech companies now.
I missed this... any good articles about it?
I missed this... any good articles about it?
http://www.computerweekly.com/news/4500256048/Amazon-turns-s...
Amazon strategy is to become a leader in many fields, they got lucky and envisionned the potential of cloud early, for commerce of goods it is a thousand year old industry with big competition from all other the world, their goal is to cut costs, not to care about short term returns and once other businness collapse due to prices cuts that they cant folllow, then amazon will be the only leader in commerce and will rule the price of pretty much everything that is traded in the world.
Why did Amazon launch a semi-high priced phone (rather than stay consistent to the traditional low price strategy)? Bezos was hoping it would spit off a few billion a year in profit, and they'd finally have a big cash fountain to swim in like his competitors in tech.
In four to six years AWS will be a $150-$200 billion company in terms of valuation. It'll be capable of generating $4 or $5 billion in operating profit in that time frame. It'll likely pass Facebook in terms of sales within 36 months, and Facebook is worth $292 billion.