2006-07-28 02:45:03 · 8 answers · asked by Veccster 2 in Business & Finance ➔ Investing
Amazon earned its first "real" profit in the 4th Q of 2001.
http://www.thestreet.com/_yahoo/markets/earnings/10007128.html
Previously it had been reporting pro-forma profits, because GAAP profits were negative.
Amazon was founded in 1994.
http://seattlepi.nwsource.com/business/158315_amazon28.html?source=techdirt
And Amazon went public in 1997.
http://news.com.com/2100-1001-279781.html?legacy=cnet&st.ne.fd.mdh
So quite a bit of time passed between Amazon's start and the start of Amazon's profitability.
2006-07-28 02:55:09 · answer #1 · answered by TJ 6 · 0⤊ 0⤋
Yes. Amazon didn't reach profitability until 2003 (the company was founded in 1994) The stock price soared in the 90's not because of profitability but because of the irrational exuberance that occurred with the dot.com stocks. Amazon burned through a lot of money with freebies, promotionals, advertising, etc. I was a stockholder in 1998-1999 and during this time I received crap like amazon.com coffee cups, gift certificates and other junk. The stock dumped in 2000-2001 but rallied back and made a respectable showing in 2004-2005. I still love amazon.com
2006-07-28 13:40:37 · answer #2 · answered by sukditup 3 · 0⤊ 0⤋
Absolutely. The first profitable year for Amazon.com was 2003.
2006-07-28 13:10:00 · answer #3 · answered by NC 7 · 0⤊ 0⤋
They first turned a profit in the 4Q of 2001 of $5 million. It was founded in 1995 so it took them 7 years to make a profit. Hope this helps.
2006-07-28 09:55:39 · answer #4 · answered by TakingStock 3 · 0⤊ 0⤋
Like most dot-coms, they were chasing market share during the tech bubble years as its business was built. Net income has been positive for the last 3 years straight.
2006-07-28 09:59:02 · answer #5 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
As of about a year ago, the last time I heard about it, they hadnt made a profit as of then, or had just broken even.
2006-07-28 09:48:32 · answer #6 · answered by Junk 2 · 0⤊ 0⤋
thier income growth still awful. a bad business likely to get worse as plan to go into groceries & like ridiculous. No margins.
2006-07-28 10:01:27 · answer #7 · answered by vegas_iwish 5 · 0⤊ 0⤋
Seems like I remember hearing that. You could probably find out if you do some searching.
2006-07-28 09:48:28 · answer #8 · answered by Christina 7 · 0⤊ 0⤋