When Will Amazon Begin Reporting Profits?

Amazon.com (NASDAQ: AMZN  ) reported a third-quarter loss of $0.09 per share last week while Wal-Mart (NYSE: WMT  ) posted $1.24 in earnings per share in its most recent quarter, yet Amazon trades at $360 per share and Wal-Mart at $77. What gives?

In the video below, Fool contributor Daniel Sparks explains why it's not earnings that get investors excited about Amazon. Earnings and dividends might be the story for Wal-Mart, but not for Amazon, he says.

E-commerce accounts for just 8% of U.S. retail sales, according to Forrester. This $230 billion e-commerce market is expected to grow to $370 billion by 2017. As the world leader in e-commerce with still plenty of runway ahead of it, Amazon is still a growth stock -- and it should be treated as such, says Daniel.

As a growth stock, Amazon is driven by other metrics and not earnings, Daniel explains. Wal-Mart is in a whole different ballpark.

A deeper look into Amazon's massive opportunity
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.


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