Wall Street is Impressed?
Let me get this straight..
"Today, the world's most famous online retailer announced second quarter profits of $78m, a 257 per cent leap from the same quarter last year, and net revenues of $2.88bn, a 35 per cent increase."
They are losing! They have been losing all along!
The company should have died years ago. If it was not connected to the stock market it wouldn't have gotten past the first year.
Of course all the major business are no longer sustainable. It's a giant race to the bottom where everyone loses.
I live in Seattle where Amazon (along with Microsoft) gets news coverage with every quarterly report with the headline "Amazon Finally Profitable!" This has of late become quiet. What the reporters fail to mention is that Amazon up until last year has been using pro-forma accounting. Which was prominently and multiply stated on the introductory pages of all their quarterly reports.
Late last year (or early this year) I had to search for the phrase "pro-forma" in their full report and found it only once. That was in a passage which stated that earlier reports used pro-forma reporting but this one incorporated all previous accounting in this "real" quarterly report.
..Not yet formally verified by the independent accountants of course.
Yes. Anyone can have impressive sales by giving stuff away.
Oh yes. Quite some time ago, the Motley Fool put up a prohibition towards its members as they didn't want to see any more postings as to why Amazon is a bad business model.
If their investment tips are so good, why do the owners need to go out and give paid lectures to earn a living?
Oh well, that's enough ranting for now.