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> it doesn’t make money, it sells below cost, it’s subsidised by investors and in particular it’s subsidised by AWS

Who makes this claim? It’s idiotic on its face, and disproven by their filings.



> Who makes this claim?

Matthew Yglesias did in 2013.

https://slate.com/business/2013/01/amazon-q4-profits-fall-45...

> That’s because Amazon, as best I can tell, is a charitable organization being run by elements of the investment community for the benefit of consumers. The shareholders put up the equity, and instead of owning a claim on a steady stream of fat profits, they get a claim on a mighty engine of consumer surplus.

And while it was a good quip it might not have became so famous if Bezos didn't quote him unattributed a few months later in a letter to shareholders. https://slate.com/business/2013/04/amazon-as-corporate-chari...


WalMart steals from suppliers, governments, and employees.

eBay & Alibaba learned to steal from customers (fraud, counterfeits).

Amazon also stole from investors. Like many before and since.

Bezos' single core innovation was somehow persuading Wall Street to go along with the scheme. He never tried to hide or obfuscate the plan.

Amazingly, uniquely, that gamble paid off.


How did Amazon steal from investors?


Whether it's right on wrong, it's not disproven by their filings, at least going back a few years. For a very long time Amazon was running at break even or thereabouts. Additionally, while the argument that Amazon had some very profitable lines of business seemed reasonable, it was never clear that Amazon could just choose the profitable ones and leave the losing ones. Loss leaders is a thing. AWS has subsequently made Amazon look amazing and they are obviously worth an ungodly sum of money, but if it weren't for AWS it would still be unclear how good of a business Amazon really is. Even ads isn't a business they get to be in for free. They couldn't just shut down Amazon's direct lines and be all ads + marketplace.




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