""" Amazon said its U.S. books, music and DVD/video unit turned a $10 million pro forma operating profit in the quarter, compared to an $11 million loss a year earlier. Sales in the division rose 38 percent to $385 million.
But Amazon's ``early-stage'' businesses, including newer areas like hardware, kitchen supplies and patio furniture that it has expanded into in recent months, lost $64.9 million, compared to $40.1 million a year earlier.
Bezos said those product lines would become increasingly important as Amazon's loyal base of 23 million, mostly high-income, well-educated, consumers started buying more goods from its site. """
No Bezos, you're wrong. High-income, well-educated people often like to go to a nearby store where they can pick and feel the kitchen appliance/patio furniture they're buying. They are discriminating individuals for whom nothing beats the feeling of going to a store and sitting on a patio furniture and then deciding whether they want to buy it or not.
Your business model for books is right; but it's not the same for the rest.
Bozo is trying to apply a "one-stop shop" theory like PCLN or "Walmart on The Net". Problem is - these guys are getting crushed so bad it's not even funny because of the reasons you stated - people want to touch and feel. I knew this model was gonna crash right from the start...needless to say, I've shorted it many a time. Prior to this earnings announcement was no exception - this is the 8th consecutive earnings announcement the stock has gone down hard. Cheers!