Amazon Q2: net sales up 29%, net income down 96%
I was going to wait until after the conference call, but it’s not working for me right now…I’m not hearing anything, and the slide hasn’t changed.
Here’s the press release on Amazon’s 2nd Quarter (Q2) financial report:
Let’s see if I can give you a good analogy…
“Hey, Sweetie, how did the lemonade sales go?”
“Great! Last week, I sold 100 glasses…this week, I sold 129 glasses!”
“Wow! That’s a lot more! Let’s put your money in the piggy bank.”
“Let’s see…last week, you had $5. That was one hundred glasses at a nickel apiece. Where is your money from this week?”
“Here it is.”
“Honey, where’s the rest of it? This is only twenty cents.”
“That’s all there is.”
“What happened? Did someone take it?”
“No. I spent it.”
“You spent it? On what?”
“I bought some movies for people to watch while they bought the lemonade. I also bought some books that they can borrow to read while they drink it.”
“Well, that explains why you had more customers, I guess.’
“Yes, and they really like it! I’m sure they’ll come back next week!’
“Is that all you bought?”
“No…I bought a robot.”
“You bought a…why did you do that?”
“The robot puts the lemonade in the glasses for me, so I don’t spill any.”
“Okay, honey…but really, I don’t know how I’m going to get any more money to buy lemons for you when you keep spending all of it like this.”
“But next week, I’ll make loads of money!”
It’s always been true that Amazon stockholders have to be made of sturdy stuff. They have to wait years to see results sometimes. Amazon literally bought a robot company, and that cost a lot of money…but it’s likely to save a lot. Amazon bought videos for Prime streaming (well, licensed them), and pays for every book borrowed through the Kindle Owners’ Lending Library.
Overall, I don’t think this is going to surprise people much. We’ll see, though…
Update: I listened to the recording. I had suggested they might tease new hardware, and there was mention of liking the “road map” for the Kindle Fire (and the question had included hardware, I believe). There was a lot of talk about sales tax, and they answered as they usually do, in terms of economic impact: they already collect sales tax or VAT (Value Added Tax) on something like half of their sales, and are still able to compete well.
This post by Bufo Calvin originally appeared in the I Love My Kindle blog.