Bezos gets Slapped for Losing Money at Ad Age

4 comments
Thread Title:
AMAZON.COM: A CHAMPION ONLINE MONEY LOSER
Thread Description:

Paid content points out the threadlinked Ad Age article by marketing legend Al Ries who slams a recent BusinessWeek piece titled "The Wizard of Web Retailing"

In the decade since its founding in 1994, Amazon.com has racked up $17.5 billion in sales. Currently its stock market value is $16 billion. And according to Business Week’s annual survey of the world’s 100 top brands, Amazon.com is No. 66 with an estimated value of $4.2 billion.

$3 billion loss
Not bad, except for one thing. Amazon.com doesn’t make any money. In the past decade, the wizard of Web retailing has managed to lose $3 billion. That works out to an astounding 17.1% loss on each dollar of sales.

A retailing wizard? When you look at the numbers, Amazon.com looks more like Kmart than Wal-Mart. As a matter of fact, in the last decade, Kmart managed to lose only 1.8% on each dollar of sales and Kmart went bankrupt.

Staci at PC notes:

I just got off the phone with a VC who says that analysis is off base and assures me Amazon is a thriving business with plenty of cash in the bank. I'm not sure that cancels out Ries' efforts to look beyond the myth but it's worth remembering.

Is Amazon all brand and no cash?

Comments

http://finance.yahoo.com/q/ks?s=AMZN

I'm no Nostradamus, but I think Amazon.com is better positioned for the future than Kmart.

VC or no VC, I don't think Am

VC or no VC, I don't think Amazon would have hung on this long if it were in as bad shape as all that.

Sure they have cash...

Other people's cash. Hard to argue with the fact that Amazon has never made a profit. While I don't think Amazon will fail in the near future, I'm not inclined to invest any money with them either. To date, all they have shown is that they can raise money, they've never shown they can make money. Confidence men do that all the time...

Stock Downgraded to "Sell"

http://www.washingtonpost.com/wp-dyn/articles/A47171-2005Jan4.html

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7234734

A little competition appears and analysts finally come around to thinking that perhaps Amazon is having difficulty...

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