Feeds

Amazon could announce a profit any time it wants

Goldman Sachs has it all figured out

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Amazon.com could be profitable if it wanted to, or if investors demanded it, investment bank Goldman Sachs has claimed in a report published this morning. The GS report will no doubt come as a surprise to many -- Amazon is one of the e-conomy's most notorious loss makers, having consistently failed to report anything near a profit since its much-heralded IPO, despite regular strong revenue growth. Indeed, over the last few quarters the company has been warning that its losses will increase significantly. The reason, it claims, is its ongoing expansion into bother, broader markets than the book retailing operation that made its name. But therein lies the key, reckons GS analyst Anthony Noto, cited by Reuters. Amazon's spread of online stores is now such that it can afford to satisfy itself with the number two, three or four positions in each sector, and focus on making money rather than dominating the market. So if Barnes and Noble sells more books that Amazon, it doesn't matter because it's home improvement, consumer electronics, toys, music and video sales will leave it better off in the long run. This approach would bring Amazon over $10 billion in revenue over the next five years, Noto reckons. As the company's strategy currently stands, it will lose $1.12 per share for the current financial year, according to GS estimates, and $1.20 per share in fiscal 2000. Whatever it does, Amazon should go into the black in 2002, Noto's report claims. The question is, given what else he claims, will Amazon's shareholders want to wait that long? ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.