Amazon Isn’t Spending Less Than It Earns, Either
If corporations are people—and, as we all know, they legally are—then Amazon is a person just like you and me.
That is to say: Amazon is spending more than it earns.
And, just like you and me, Amazon has plenty of reasons why it’s overspending. To quote Mashable: “Amazon is spending an incredible amount of money on a variety of investments that are not turning a profit. Well, not yet.”
Yes, the Amazon quarterly numbers are out, and although—as Geekwire notes—its net sales increased 23% to $19.34 billion for Q2 2014, the company also reported a quarterly loss of $126 million dollars.
I am having flashbacks to my own failed business and the cycle of thought in which I convinced myself first that I was “spending money to make money!” and second that as soon as I had one good month, I could start to pay back what I’d lost.
It’s amusing to learn that Amazon, just like you and me, is spending money to make money. (As a corporation wearing a people suit, it truly has picked up the local mannerisms and cognitive dissonances.)
Also, I suspect that despite this quarterly loss, Amazon is going to do just fine.
Photo: Stephen Woods