Don't go looking to see AMZN bankrupt any time soon. They are doing quite well. If you check their most recent annual report (go to the AMZN quote, click on SEC filings) you see that they have a gross margin percentage of 19.5%. While that is down a bit from the previous year (22%), gross margin in ollars increased 733% in that time, from $3.5 million to $28.8 million. AMZN is showing a net loss because of their heavy marketing and development costs, which they hope will lead to future sales and still higher revenues. At least at presesnt, they certainly appear to be a viable and growing long term company.
To the person who asked why BKS is anticipating a net loss...it is for similar reasons. They are putting a lot into the develoment of on-line sales. They normally show a profit in the 4th quarter...similar to most retail businesses who get an inordinate amount of their annual sales during the holiday season. And because they also have the retail stores, and are not a start up business like Amazon, they have that estabished income stream that contributes to net income and also helps fund the growth into e-commerce.
I chose to invest in BKS rather than AMZN because I think that the strength of the name will be important in developing a solid on-line market. And the fact that is is an established, profitable company also seems to me to provide more and better financing opportunities to develop the internet presence. I like having the two business divisions to fund growth and minimize risk.
But I think both BKS and AMZN will be around for a while...and I think there is room for both when talking about the sales volume expected from internet sales in the next few years!