Amazon announces 1st quarter results: the more they sell, the more they lose

In this press release:

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1811383&highlight=

Amazon announced their 1st quarter results.

As is not unexpected, their sales were way, way up…22%, and of course, this is now a well-established company, so that’s amazing.

According to my calculations, that means that by 2039, every sales transaction in the world will go through Amazon…including when your kid “sells” a ย tooth to the Tooth Fairy. ๐Ÿ˜‰

At the same time, net income was down 37%.

They are just going to figure out a way to sell fewer items, or they are never going to make any money. ๐Ÿ˜‰ Just kidding, of course…there are other outgoing expenses besides selling things.

Still, while Amazon customers cheer the great deals they get (including “no additional cost” items through Prime), many Amazon investors are probably smacking themselves in the forehead…again. ๐Ÿ™‚

This post originally appeared in the I Love My Kindle blog.

4 Responses to “Amazon announces 1st quarter results: the more they sell, the more they lose”

  1. Edward Boyhan Says:

    For a change I did not listen to the conference call, but I dd run through all the tables in their PR. Two things jumped out at me This was the quarter where they took a whopping charge for acquisition of their new headquarters. If you remove that one-time charge, then the cash flow numbers don’t look all that bad. The other interesting thing to me was the “other” segment of their business — this is where AWS resides. The growth here was the best of all the segments — interestingly, it almost all comes from North America.

    How shareholders will react is always interesting. So far there have been few stories on their earnings — just one that I saw from the WSJ which was merely reportage — little analysis. Recently, I found that Amazon’s P/E ratio was 3200! That’s far far larger than any other company I’m aware of. What it says to me is that so far shareholders don’t care about earnings. Quarter after quarter they have bid the share price up to stratospheric levels given their relatively niggardly earnings.

  2. Zebras Says:

    I signed on to my Citibank thank you program, preparing to buy an Amazon gift card with my accrued points. They’ve eliminated the Amazon gift card option because they have added the ability for you to shop directly with your points.

    I went through the process of linking the two accounts only to be shocked by the fact that 5,000 points only buys $40 worth of stuff, when it used to buy a $50 gift card. I hastily unlinked the accounts, as there are still other gift cards I can get for $50 that we will use up.

    I thought you and my fellow Bufo Calvin fans might want to know this is happening, so they make sure if any of their rewards programs offers the same kind of capability, they need to check out the value of the exchange.

    • Bufo Calvin Says:

      Thanks for writing, Zebras!

      Do you know who eliminated the option? Was it Citibank, or Amazon?

      We have a rewards Visa…I’ll have to check it out to see if anything has changed.

  3. Zebras Says:

    No, I don’t know whose decision it was or was it a joint decision. If I hadn’t already previously purchased an Ammy gift card that way at one value, I might have just applied my points to my purchase (an 8.9″ Kindle Fire, yeah!), and not thought too much about it. However since I have other uses and can still get say the Panera Bread gift card for $50 for 5,000 points, I would save it for those things.

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