Ever since Amazon.com, Inc. (NASDAQ:AMZN) came out with its second quarter results, the talk among the investor community has shifted to whether the company will ever post a profit. The third quarter guidance from Amazon.com, Inc. (NASDAQ:AMZN) doesn’t seem to help, as the company is gearing up for posting an even larger loss.
Kara Swisher, co-executive director of Re/Code discussed the spending spree by Amazon.com, Inc. (NASDAQ:AMZN) and its second quarter loss on CNBC’s ‘Squawk Alley’.
“I think this is Jeff Bezos doing what he has done forever, since he started that company and so its interesting that they keep forgetting that he does this and this is what he does. He is investing in all kinds of stuff, some of it crazy, some of it, this phone that came out, that wasn’t very well reviewed actually and this is typical Jeff Bezos. Since the market are always shocked that he is Jeff Bezos and I find that interesting, but you know this what he does, this is what he does in order to grow his company. He gets into fights with the Publishers and everything else and he is squeezing them and so it’s just typical of him. So I am always surprised the market is surprised,” Swisher said.
The ‘Squawk Alley’ team compared Amazon.com, Inc. (NASDAQ:AMZN) with The Alibaba Group, which is going for its IPO in August. The ‘Squawk Alley’ team thinks that earlier Amazon.com, Inc. (NASDAQ:AMZN) was a leader in everything it did, but with the Alibaba Group coming into the picture, all that is going to change now, because Alibaba Group not only does much more business than Amazon.com, Inc. (NASDAQ:AMZN), but is also immensely profitable.
“I am sorry, it’s Jeff Bezos, He has done it for, since he has started the company. I think this is what you buy, when you buy this company. I think there are some comparisons with Alibaba, but Alibaba hasn’t started doing original content yet, which they may have to do,” Swisher added.