Has Amazon.com, Inc. (AMZN) Lost Its Golden Touch?

Investors are starting to question Amazon stock
Amazon CEO Jeff Bezos has said his competitors’ margins are his opportunity, but that means he doesn’t have a real interest in making a long-term profit. But investors do, and with a market cap of $121 billion Amazon eventually needs to show it can make money. With Amazon stock lagging the market this year, maybe it’s finally time to pony up some profits for the lofty valuation.

What I’ve questioned all along about Bezos’ model is its ability to make money. He can get into all the markets he wants, but if he can’t make a profit, then the company isn’t worth a hill of beans.

In the meantime, I’ll take my shipping and streaming subsidies with a smile. Amazon.com, Inc. (NASDAQ:AMZN) has lower prices than lots of competitors, and with my Prime membership I get two-day shipping and lots of new streaming content. Speaking of which, a $1.93 battery order is here. Don’t worry; it made it from New York to Minnesota in two days — but I have to wonder what the overall cost was for Amazon.

The article Has Amazon Stock Lost Its Golden Touch? originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium is short shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com, Netflix, and Walt Disney.

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