What. The. Fuck.

Amazon.com Inc shares hit a record on Friday after quarterly results increased optimism about the Internet retailer’s U.S. business.

The company reported a second-quarter net loss and weaker international growth on Thursday. However, its domestic business expanded quickly and profit in the region improved.

What kind of crazy upside down world are we living in when this happens.

  • BongBong

    Someone once described Amazon as “…a charitable organization being run by elements of the investment community for the benefit of consumers…”

  • fenderlover

    In other news, shares dip as Apple closes quarter with record sales and profits…

  • RD

    It’s mind boggling to say the least. They talk about the future of Amazon and how one day they’re going to explode. When does the day come that they reset these expectations? Not that they would but Apple could click a few buttons and open iMarket w/ all the credit cards they have on file and disrupt the crap out of Amazon. That’s what would scare me as an $AMZN investor. We’re talking about an online marketplace!

    I love Amazon and use it all the time but as an investor that is in Apple at $600, it’s frustrating to see the differences in treatment.

    • fenderlover

      Amazon will explode once they’ve put all brick & mortar shops out of business, and we have no other choice…or very little choice, anyway.

      • Mother Hydra

        They can’t put everyone out of business because they need brick’n’mortars to service their soon burgeoning same day locker biz. That is precisely why I think they never will open a retail location. Plus- it would be traditional retail with all THAT entails. RUN!

    • Sigivald

      It takes more than a name and a shopping cart (and a metric asston of money) to “disrupt” online sales.

      Apple doesn’t have Amazon’s warehouse and shipping infrastructure, and it can’t just buy it overnight, if it wanted to enter such a low-margin industry (it doesn’t).

      • RD

        I know it’s an exaggeration and Apple was just an example but it doesn’t seem to be a bulletproof industry which it’s being treated as.

      • Oluseyi

        Wal-Mart does.

  • Mother Hydra

    I have two possible explanations:

    1: slow gas leak

    2: Investors are huffing ether

    I get the strong sense this is being done to Amazon just because, in the same way people are now vilifying Apple and to a much lesser degree, Samsung. WTF indeed.

  • c

    Did you miss the part where NA sales are up 30% and gross profit is at its highest point ever?

    Investors who are down on Apple are idiots, but Amazon is a strong company with incredible potential.

    • tylernol

      they are playing a shell game, shifting losses into infrastructure spending, and making their gross margin look good.

    • Sigivald

      That certainly provides reason for optimism about future value, thus reason for a share value increase.

    • DaveChapin77

      But international sales are growing much less. Also a lot of the revenue growth was an accounting change on eBooks. Moving back to wholesale model meant recognizing the full book price as revenue rather than just the agency margin.

  • Jeff Carlson

    My theory is that so many of the investment community uses Amazon that they’re afraid it would go away and they’d lose two-day shipping on almost everything.

    • Mother Hydra

      THAT I believe lol! Amazon: bankrolled for charity’s sake.

  • tylernol

    Amazon is almost 20 years old now. Maybe by the time they are 30 years old they will be profitable and worth the premium being placed on their stock now.

    • Mother Hydra

      I’m hoping amazon just starts selling rocking chairs and yelling indiscriminately for people to get off the lawn.

  • Jeff

    Yes, it is crazy, but not at all a WTF moment. This is Amazon, and to have a headline like this shows a lack of understanding of the kind of company that Amazon is. It would be really easy for someone to say the same thing about Apple’s profit vs. revenue (I’m sure there’s a link around The Loop somewhere about that.)

  • Fake Account

    Stolen from a comment on HN:

    “It’s the difference between a business and an individual. Individuals pay taxes on incomes. Corporations pay taxes on profits, so they can have arbitrarily large incomes while maintaing zero profits.”Profit” is either “money you haven’t spent yet” or “money you need to return to investors”. Modern corporations have been telling investors to eat a bag of salted peanuts lately, so they really don’t care about returning profits to investors. So if “profit” is just “money you haven’t spent yet”, you’re better off spending it before you pay taxes, because then you get to spend X% more.

    The individuals running the company are presumably compensating themselves lavishly to run a company with no profits.”

    You don’t need to pay the shareholders dividends if the share price is going up, so…

  • Tvaddic

    When Wal-Mart shifts its entire focus online Amazon would have some low cost competition, Wal-Mart make 461 Billion last year, more than 5 times Amazon, and more importantly they made a profit.

  • Jon

    Amazon’s race to the bottom on prices never works. Look at the PC market.

  • Amazon keeps opening warehouses, they publish just as many tablet devices every year as apple if not more, they are going into film production, they are publishing books themselves, they open category after category on amazon.com…. that is growth the shareholders like.

    Don’t quite understand why this is more “upside down” than a share price of 700 USD for APPL.

    I mean I understand that you don’t understand but then again that’s like a toddler going “What kind of an upside down world is it when Schroedinger’s cat both lives and dies”. I mean you’ve had at least 15 years now to understand how the market works, a “WTF” about Amazon every time they publish new market data basically just says you don’t WANT to know why.

    This is what the market has done forever. Fund the disruptor and invest in their future. It’s not novel. It’s how it’s done and always has.

    Better wonder why Goldman Sachs can do a merry-go-round with aluminium. That shit’s crazy.

    • rattyuk

      But it boils down to Wall Street rating a 7 million dollar loss higher than a 7 BILLION dollar profit. Moronic.

      • No it doesn’t. Seriously this is the most over-exaggerated simplification ever. Amazon sells everything from diapers to model trains, disrupting ALL those markets while Apple builts roundabout 15 devices in maybe 500 flavors (of which Jim is proud mind you, remember the post where he mocked Amazon for having 50 different Kindles? Which is a smart tactic when seen from an economist’s angle because they provide a price point for every buyer, something that for instance doesn’t get into John Grubers head when he says that too much choice irritates customers which is simply not what economists say. Real economists. Those teaching at universities).

        Just count the number of products Amazon sells on their website. They disrupt EVERY SINGLE MARKET of those products, like I said from model trains to diapers.

        As soon as Apple sells diapers, Jim might go WTF and even then it still doesn’t explain how shares of publically traded companies are valued. It’s basically mental to think that as long as profits go up share value has to go up. That’s not how it works, period.

        Saying “WTF” to that is like a creationist going “I don’t understand it so it must be god”. No it isn’t. When you don’t understand something, you go read a book about it and don’t repeat over and over that you don’t get it every single quarter ad infinitum ad absurdum.

        It’s really getting ridiculous. Jim is basically arguing that the bigger a company gets the higher the shares have to be valued. That is NOT how it works. I mean just look at the oil companies who have the whole developed world by the balls running government sanctioned oligopolies. From the looks of it they must be worth trillions.

        They aren’t.

  • tylernol

    this “deep” vs “shallow” moat perception explanation over at Philip Elmer Dewitt’s article is very astute:


    • I found this as an interesting bit from that:

      ‘As a regular on Investor Village’s AAPL Sanity board put it last week:

      “The Street sees Amazon as the world’s biggest (online) global retailer with almost limitless growth. [It] sees Apple as a (mobile) device maker that because it is wholly dependent on its ability to innovate nonstop, expand its (ultimately saturated) markets while fighting off competition and controlling its very unstable supply chain, has limited growth.”‘

      Hadn’t really put it in those words but that makes sense of all of this. Thx for the link.

      • tylernol

        yeah that’s it in a nutshell.