Amazon's tiny profits explained

It’s all about investing in the future


Amazon skeptics have long repeated a narrative about the e-commerce behemoth now worth $880 billion: that it doesn’t make money, that its razor-thin margins meant to crush competitors are unsustainable, and that its business model will surely, eventually, fail.


We reached out to a handful of recruiting and HR experts to get their best tips on how employers can nip bias in the bud—here’s the advice they shared.


And pretty much every financial quarter, I make the same chart for Amazon’s quarterly earnings that seems to reflect this narrative. It compares Amazon’s revenue (gray line) — seasonal peaks and valleys that go up and to the right to the tune of nearly $70 billion last quarter — to profit (pink line), a much more modest line that reflects a small percentage (3 percent last quarter but historically much less) of those sales. It shows relatively low profits on gargantuan sales.


But the idea that Amazon’s relatively low profits mean it’s failing at business is not strictly true — at least not anymore. continue reading on vox/recode