Ask a Fool: What Is Net Income?

Worldwide Invest Better Day 9/25/2012

In the spirit of better investing and in celebration of the first Worldwide Invest Better Day coming up on Sept. 25, Motley Fool analysts will be answering user- and reader-submitted questions leading up to the big event. "Ask a Fool" anything, and we'll do our best to help you invest better.

Net income is a company's earnings, or profits, as reported on the income statement. It's what is often referred to as the famous "bottom line." In the following video, Fool.com analyst Austin Smith sheds light on why this is one of the most important, but also most easily manipulated, metrics in investing. He also examines the net incomes of different companies, explaining why a company such as Amazon.com (NASDAQ: AMZN  ) appears to have such extremely low net income. Watch the following video to learn more.

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Austin Smith owns shares of MAKO Surgical. The Motley Fool owns shares of Amazon.com, Facebook, and MAKO Surgical and has options on Facebook. Motley Fool newsletter services recommend Amazon.com, Facebook, and MAKO Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On September 25, 2012, at 9:40 AM, HoosierFraud wrote:

    I was looking at ANGI and this article was there. Was that fate or did you already know this company doesn't care about "net profits". That is sooooo 70's.

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