Tomahawk, WI 7/31/2013 (Basicsmedia) – Anyone who has been following financial news will have noted with some measure of surprise that Amazon.com, Inc. (NASDAQ:AMZN) never incurred the full wrath of its investors even after releasing financial results which were way below what was expected. AMZN, which is Amazon in full, recently announced its second quarter financial results which left many wondering whether it would be sensible to invest elsewhere or not. EPS was expected to come in at $0.05, yet was reported was -$0.02. Total revenues were expected at a minimum of $15.73b, yet what was announced was $15.7b.

Why isn’t the market reacting?

Immediately the financial results were announced, the market started reacting and downward movement of the stock price became evident. This never lasted for much longer and within a very short period, the trend had been reversed and there were actual gains with the stock price. At the end of it all, there had been a gain of up to 2.84% for the stock price. The market never reacted negatively to this news because the general consensus is that AMZN isn’t a sinking ship and profits can be achieved with relative ease compared to the situation with other companies.

The loss, or reduced revenues and general financial performance of AMZN are attributed to several factors. One of these factors indicates that the company reinvests most of the revenue it gets in brand building and other newer segments. An example of this is where developers are currently being given the Amazon Web Services to use for free with the goal being to make them more accustomed to working with the cloud first for the time being. This is one segment which has the capacity of being a huge or major source of revenue for AMZN in the near future, once more people know how to use cloud systems.

Look at Other AMZN Numbers

Amazon has been reporting that its user base is growing at a wonderful rate. Its active users have grown to an impressive 215 million, which represents growth of around 19%. The sale of third party units also experienced 29% growth, while there was a 29% increase in terms of total units sold. More impressive is the fact that revenue grew by a massive 25%, and this is considered to be better than what has been experienced by other players in the e-commerce industry. This is adequate proof that there is growth in this company and soon, this will be converted into massive profits and dividends for shareholders.

The fact that the shareholders haven’t reacted negatively is a clear indication of the fact taught they understand what is going on within AMZN. They are prepared to wait for as long as it will take before they can start enjoying major returns for their investments. The main revenue driver of AMZN remains Amazon.com which is considered to be the dominant player in online retail platforms. There is a strong belief that the company is diversifying into other areas and within the next three years, this will become clearer.

The overriding belief is that AMZN will soon attract hundreds of billions of dollars in sales within the next decade, or thereabouts. This is an investment I would advise anyone to take up quickly for the long term.

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