Do you think Jim Edwards of Business Insider gets his argument right? In a recent article, Mr. Edwards talks about the earnings release that saw Amazon climb $42 per share yesterday to $354 per share, for a one-day gain of 13.7%. Amazon reported profits of $0.45 per share, and given that Amazon is split up into 463 million pieces, we are talking about $200 million in profit from a company that is currently valued at $163 billion.
Here is the most important quote from Edwards’ piece: “In fact, analysts have a long history of misunderstanding Amazon. For years, investors have complained that Amazon is chronically unprofitable. In the early years, after Amazon was founded in 1994, a lot of serious people argued that perhaps Amazon was fundamentally broken, that it would never make money and would eventually collapse.
Instead, Amazon grew and grew, reporting bigger and bigger revenues … Read the rest of this article!