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> "Amazon famously remained unprofitable due to reinvestment and waiting for them to become profitable before investing was a bad bet." Amazon wasn't profitabl
by m-i-l 3mo ago
> "Amazon famously remained unprofitable due to reinvestment and waiting for them to become profitable before investing was a bad bet."
Amazon wasn't profitable because it reinvested earnings into growth, while SpaceX is funding it's growth by taking on very significant levels of debt (which will take a big chunk of future earnings just to service). These aren't comparable from a risk perspective.
- JumpCrisscross 3mo ago> Amazon wasn't profitable because it reinvested earnings into growth Was this obvious early on?
- sumeno 3mo agoYes, every time there was discussion about Amazon not being profitable it was discussed.
- marcosdumay 3mo agoTBF, it was obvious for Uber too, but when that one decided to cash on the results of the growth, there wasn't much they could take. So it's not a certain thing by any means. But anyway, it's also clear SpaceX isn't doing the same as Amazon.