Ploughing the money it makes into its growth has been the Amazon model from the beginning.

Amazon enjoys an advantage most would-be competitors must envy: remarkably patient shareholders. The company made a net profit of just $274m last year, a minuscule sum in relation to its revenues and its $154-billion value on the stockmarket. Even after a recent slump (see chart 2) its shares still cost more than 500 times last year’s earnings, 34 times the multiple for Walmart. Its core retail business is thought to do little better than break-even; most of its profits come from the independent vendors who sell through Amazon’s marketplace. Matthew Yglesias, a blogger, memorably described Amazon as a “charitable organisation being run by elements of the investment community for the benefit of consumers.”

Can this go on?  How Far Can Amazon Go Without Profits