Here’s a Look Behind Amazon’s Sales Numbers

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April 25 (Bloomberg) -- Amazon’s first-quarter sales rose 23 percent to $19.74 billion, the company said in a statement yesterday. Dixon Doll, co-founder of venture-capital firm DCM and Bloomberg’s Cory Johnson examine the numbers on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

First up on amazon, you looked through these numbers.

They are spending their way to growth.

This is such a fascinating company to me.

I've been looking at the numbers for years and years.

I just do not get it.

It looks like what they're doing is what they've always done which is run the company at a very fair profit -- bare profit, pick a couple of growth industries, but the focus here is amazon prime.

They have augmented it with video, with content but really they are spending to get rhymed to get customers to buy everything on amazon.

Virtually no profit with regrettable revenue.

-- with incredible revenue.

The top line is really small.

If you look a little bit further back to the early days of amazon, they were running at not just a barely break even, but do lose a lot of money.

And of as an early stage investor, that is an ok thing for a start up, to lose money in the big -- in the beginning to grow.

What you're talking about market cap companies.

And is a company that has a very unique business model, and it has a very unique leader.

They know exactly what they are doing.

One way of getting an understanding as to look at the contrast with somebody like alibaba who we are going to talk about here and a little bit.

The models are totally different.

There are margins at alibaba that are huge, and amazon is half of that.

You drive a company that has $20 billion in sales in 13 weeks of the last quarter.

It is amazing that they do this with virtually no profit, but there goal is to conquer categories.

It will take some time to do it.

I think i know a lot of people who believe they will be the first company to had a chilling dollar valuation just because of this diversity and all of these different games that they play.

The market is incredible multiple base.

What that shows me that they really do have their controls on the dials.

They can turn it up a little bit to show a little reef cash flow if they want.

Can they ever throw up a lot of rough -- profit.

If they were to raise prices, could they do that?

No one seems to care, because they seem to be delivered on that top line.

As long as they keep finding new market segments that have synergy with what they already doing, they can continue to play this game quite successfully.

What about the whole chase for premium online content?

Amazon is added, apple, hulu, netflix, there is news out this morning that marker south and aol have now done a deal together.

I was in l.a. on vacation last week.

I ran into a couple of people i know, this guy owns a camera truck business.

Everybody is working, and it is not called pilot season.

The reason they are working because amazon and netflix and hbo and showtime and microsoft and all of these people are out there shooting new content, doing new programming.

Hollywood has finally found their way to the world of technology which they have been after for a long time.

It is the wild wild west.

It is an explosively growing business.

The consumer demand for more original content of all flavors, shapes, and sizes has skyrocketed.

Greg is that window closing?

I begin to just beginning to get started right now.

Exploding, yes.

It is interesting that that is the thing that is driving this.

Netflix has had a lot of success with house of cards, not everyone will be that successful.

And to get some point, it will not work the way that the wild wild west and television industry were to 80 years ago were eventually gets streamed up to just keep players who will own the premium content?

The real question is how will the content itself evolve?

We're taking the content that we know, the hbo series kind of content, taking what was the sopranos and the wire and trying to do stuff like that in these new mediums and new delivery

This text has been automatically generated. It may not be 100% accurate.


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