However, back to Amazon... Amazon showed net income dropping 73% compared to last year's numbers. This was a result of very tactful and strategic leadership by CEO Jeff Bezos. Bezos is looking toward the future and that means that Amazon will need to gain market share. Particularly, the market share of the e-reader industry. Amazon knows that if they allow Apple's iPad to dominate the market then they will be dependent on an Apple product to sell their e-reader products. Which consumer trending shows it's slowly becoming the norm. So Amazon tactfully took losses on their new Kindle Fire so they could saturate the market, allowing them to avoid being at the mercy of Apple for the sales of their products and also making Kindle Fire a household name. It's a very impressive move by a company that is clearly not just a bubble. Too many companies are in it for quarter to quarter gains, but it's few and far between to see a company with selfless level 5 leadership. After Amazon's third quarter report was issued the stock price dropped from $240 to $201. Wall Street wasn't happy and was trying to prove a point, but Amazon is quickly seeing correction closing Friday at $217. You can't keep a great company down.
Amazon is a extremely smart company. I think they have an excellent business model and are growing fast. Just don't mistake this company for a bubble. They have shown they are more than willing to give up short-term gains for long-term company growth. I only invest in companies I believe in and I do believe in this company.
It's just nice to see a company stand up for it's beliefs in this Dog eat Dog world. In a way, it's very inspiring to me. Hope you all had a great week! Enjoy Halloween!