For all Amazon’s undoubted success, there are a few chinks in the behemoth’s armor.
The main one of these is profit. For the quarter, operating income
was down by 40% to $347 million. The dramatic growth of marketing costs,
which were partly a function of the Whole Foods acquisition as well as
the substantial promotion of new devices, took its toll on the bottom
line. Fulfilment and shipping costs also increased faster than sales,
although the pace of increase is not quite as bad as feared.. . . more