The Future For Tesla and Amazon Stock

When a business is small, it is possible to overlook a lack of profits based on the belief that you will believe to raise prices later once the product becomes entrenched or the business is able to lower its input costs as the volume sizes give way to the traditional economies of scale advantages.

What has caught my attention when I analyze Tesla and Amazon is that both businesses have become quite large on the revenue front without earning consistent profits that are expected based on the size of the revenue base. Specifically, Tesla is set for losses of around $500 million in 2016 compared to revenues of $7 billion, and Amazon is earning $2.5 billion in profits compared to $134 billion in revenues.

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