In an article on Fool, it was reported that Amazon.com, Inc. (NASDAQ:AMZN) investors are now getting frustrated because of the problems with Amazon.com, Inc. (NASDAQ:AMZN) market position. Amazon.com, Inc. (NASDAQ:AMZN) has faced a tough year 2014. It failed to make money and now investors are asking the company top management about the future strategies. In an interview, Amazon.com, Inc. (NASDAQ:AMZN) CEO Jeff Bezos has given a pretty simple and straightforward explanation to why Amazon.com, Inc. (NASDAQ:AMZN) is unable to make money since months.
Bezos thinks that Amazon.com, Inc. (NASDAQ:AMZN) made money in the past and now, the company is trying to invest heavily in some other areas. For example, it tried Amazon Fire Phone—– unfortunately, it failed. It is trying physical stores and Fresh delivery in the US. It is also trying to innovate it web services. Bezos gave the example of a person who started a lemonade stall and converted it into a lucrative business and now instead of piling up money, he is investing in other business like hot dogs and burgers.
Bezos thinks that Amazon.com, Inc. (NASDAQ:AMZN) is not inherently unprofitable rather it is suffering because it is more interested in investing in growth-oriented projects. He thinks that investors are of different types; some prefer stable earnings and some are in favor of dynamics growth related venture which could give huge profits in the future on the cost of temporary profit outages.
Amazon.com, Inc. (NASDAQ:AMZN) CEO quoted Warren Buffet, the idea of which is that companies must not lie to their investors and come clean in every situation. Bezos is hopeful that his company would soon come out of this crisis and investors will become happy again.
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).
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