Amazon just reported its third quarter results.
The company missed Wall Street’s estimates for both revenue and earnings and said it would have lower profit margins next quarter. This resulted in the usual spanking of Amazon’s stock, as short-term profit seekers growled in disgust and raced for the exits.
In other words, with respect to Amazon, it’s the same as it ever was.
Amazon is a highly unusual American corporation, for several reasons:
* Amazon unapologetically builds its business for the long-term, without worrying about what short-term Wall Street traders think.
* Amazon sacrifices near-term profits for long-term investments, again without worrying about what short-term traders think.
* Amazon operates at a much lower profit margin than it could have if it were trying to “maximize near-term returns,” which is what many (most) American corporations try to do.
* Amazon is investing — and hiring — aggressively for the future, at a time when most American corporations are cutting costs, laying off workers, and hoarding humongous piles of cash.
In other words, Amazon is doing what many more American corporations could and should do: Balance the near-term “profit motive” with a more holistic mission of focusing on the long-term and serving customers, employees, shareholders, and the community at large.
Read the full article ” DEAR AMERICA: It’s Time To Say A Big ‘Thank You’ To Amazon“, published in Business Insider