Last quarter Amazon generated sales of $19,741,000,000. It incurred operating expenses of $19,595,000,000. So, leaving all the other math aside for argument's sake, it's basically a wash. Expenses at Amazon are up across the board quarter over quarter -- fulfillment, marketing, technology and content, generate and administrative costs. Same goes for revenue. Up big time in the States and abroad. Media's up (though modestly). So are sales of everything else Amazon sells as well as the "other" category, compared largely of Amazon Web Services.
So what's the problem?
People like to claim Amazon's not transparent. Bull. They might be the most transparent company in tech. While we don't know a breakdown of Kindle sales by model, we know exactly where Amazon's spending its money. There's no black box here. We see it in content deals, television commercials and every time we order something and it arrives in less than two days, often on Sunday.
If you're a consumer you're happy. And Amazon represents one of the few cases where, if you're happy as a consumer, you should be happy as a long-term investor. Long-term meaning you didn't just stumble on what Amazon has been doing six months ago and buy the stock. That doesn't make you a long-term investor. That makes you an opportunist who played with fire and, if you didn't time it right, got burnt. But if you're really long-term -- with a reasonable cost basis on your position -- you're buying this puppy up on the way down because you realize the Amazon haters are merely holding faux victory celebrations right now.