While Amazon doesn't release Kindle Fire sales, any commentary about the device will be key, as investors look to hear more about Amazon's mobile strategy. CEO Jeff Bezos said in a recent interview that Amazon is selling the devices at break-even, but the general thought is that the devices are a gateway to bring more consumers into Amazon's ecosystem, and get them to buy goods from Amazon and its third-party sellers, where the margins are significantly higher.
Bezos continues to spend the company's cash, as he believes it will help the business long-term. It's hard to argue with that strategy, given the share price performance over the past five years. Amazon shares have gained 247.71%, versus a 34.5% return for the Nasdaq.
We'll find out soon enough how much (if any) cash Amazon kept this quarter for Bezos to continue reinvesting in the company.
-- Written by Chris Ciaccia in New York>Contact by Email. Follow @Commodity_Bull
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