Amazon.com, Inc. (NASDAQ:AMZN) has had too many losses in the past (most recently $126 million), and with such a continuing streak of losses, many are beginning to question if the company is getting into too any things. Amazon is engaged in grocery deliveries and smart phones, along with their more traditional wares of books. In an intervention on Fox Business, Kevin Paul Scott, the author of ‘8 Essential Exchanges’ has discussed about Amazon’s latest entry into the Smartphone market.
Amazon.com, Inc. (NASDAQ:AMZN) is seen as a marketplace, and the manufacturer of Kindle, but not necessarily a manufacturer or peddler of smartphones. This has prompted experts to question if Amazon.com, Inc. (NASDAQ:AMZN) can turn a profit doing what it does, which is what their investors are looking for.
“[…] The fact that you can make 20 billion in revenue and lose money is quite an amazing feature. Amazon.com, Inc. (NASDAQ:AMZN) is a great place. But one has to ask, are they trying to be too many things, to too many people, are they spreading themselves too thin, have too little focus, and at this point, you got to ask that, because it is repeated quarters of loss and they are looking at tremendous losses again in the third quarter,” Kevin Paul Scott said.
The Fire Phones have not been so successful, and the Kindle has underperformed in the first quarter. In this light, the question is whether the management is looking at the path of profitability.
Scott said “the challenge is, I think the investors are starting to look at Jeff Besoz and say, what’s the path of profitability?” He thinks that “investors are starting to hit the panic button a little bit. They want to know, when are we going to see some return on this, when are we going to see some profitability?” He considers the extra things that Amazon.com, Inc. (NASDAQ:AMZN) is focused on now are not important, as they should focus on what they do best, which is being a marketplace.