Amazon Is Becoming Just Another Mortal Company

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Amazon stock tumbled 11 percent after today’s earnings report. Here’s why:

Amazon recorded $35.75 billion in sales in last year’s final three months [and] $482 million in profit….Analysts, however, were expecting $36 billion in sales and net income of $754 million.

I assume no one was concerned about Amazon missing its sales forecast by a minuscule amount, so this was all about its profit number. But in the past, investors didn’t much care about Amazon’s profitability. They just trusted Jeff Bezos to grow the company and shovel earnings endlessly into ever more growth opportunities. Eventually Amazon would own the whole world.

Not anymore. Amazon’s sales growth is now merely mortal, not stratospheric, and investors want to see Amazon prove it can actually make money as a mature corporation. I guess pretax income of 1.3 percent just isn’t going to cut it in the future.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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