| invetedlotus123 said: Actually, there`s more to a company financial life than just profit. Take Amazon for example, they always make salame thin profit margins from their revenue. |
You can't really compare Sony to Amazon because Amazon has had rapid Revenue growth but uses almost all that excess Revenue to fund Expansion which makes for a unique and unorthodox business model that is focused on reliable expansion.
Amazon's expansion is seen in Amazon Web Services (cloud-computing), its physical infrastructure (as in warehouses), along with warehouse upgrades. Also they try to keep prices low, support new markets with activity and increase capacity where possible.
Here's a great article which looks at what's happening with Amazon and the conclusions Benedict Evans makes titled "Why Amazon Has No Profits (And Why It Works)".
Please read to get a better understanding. -> http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works
| "Amazon’s business is delivering very rapid revenue growth but not accumulating any surplus cash or profits, because every penny of cash is being ploughed back into expanding the business further. But, this is not because any given business runs permanently at a loss - it is because the profits from what is already there are spent on making new businesses." - Benedict Evans |
