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Sarfbot t1_j2fijfj wrote

Reply to comment by aka0007 in AMZN is a buy. by Adossi

I don’t disagree that OPs list is useless. You also brought up good points which I mostly agree with.

  1. One callout is that Alexa was a $6B+ cost losing business. They’ve cut down Alexa and devices investments completely.
  2. The pendulum of “growth vs cost efficiency” has fully swung towards efficiency now. With Andy’s recent email confirming cost cutting and layoffs in Q1 and possibly throughout the year, Amazon will be profitable. No doubt in my mind.

As large as Amazon is, I truly don’t know a more nimble tech company. When pressures to increase minimum wage rose, they made the decision literally over the weekend to raise their minimum wage to $15/hr. Friday the motion was discussed, Monday it was announced and the following week it was instated. For reference, Target and Disney committed to the same goal but said they’ll need 1-2+ years to implement this.

Another reference is the year before pandemic. They had pivoted to cost cutting and increased their EPS to $14/share, from negative EPS six quarters straight.

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