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Amazon’s Future: Looking Beyond the Balance Sheet
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Amazon’s Future: Looking Beyond the Balance Sheet

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Amazon has not been an investors’ darling of late, and the guessing game over the exact game plan of its founder and CEO Jeff Bezos just got more confounding. The company posted a worse-than-expected 7 million loss for the last quarter. To boot, the world’s biggest online retailer also said it expects weak revenue growth in the 2014 holiday season. Amazon projected a 7%-18% revenue growth for the current quarter compared to the 20% it achieved in earlier years. Consequently, the company’s share price dropped more than 8% after the announcement, and Monday’s close of 0 is far off from the year’s high of 7 in January. Amazon’s undeniable strength is in the deeply loyal customer base it has built over the years, even as everybody is still waiting for it to reveal plans to monetize that. “Bezos has been on message, completely and consistently for 20 years,” said Peter Fader , Wharton marketing professor and co-director of the Wharton Customer Analytics Initiative .…

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