If you follow Amazon.com (NASDAQ:AMZN), by now you've likely heard CEO Jeff Bezos has done it yet again. Seemingly never content with being the world's largest e-tailer, Amazon dropped nearly a $1 billion in cash on video streaming monster Twitch, the wildly popular site that gives folks the ability to build their own personal gaming "channels," as well as watch other gamers do their thing.

As one of the top five video streaming sites on the planet, Twitch certainly offers Amazon a world of opportunity in the fast-growing world of online gaming. And let's not forget Bezos' recent announcement that Amazon is preparing to take on search juggernaut Google (NASDAQ:GOOG) (NASDAQ:GOOGL) in its own backyard: digital advertising. The question is, after nearly 20 years of existence, just how much longer can Bezos and team continue to spend indiscriminately on infrastructure and expanding into new markets, without making any profit?

The latest Bezos forays
With about $8 billion in cash and equivalents on the books as of the end of its recently completed 2014 Q2, the $970 million Amazon is spending on Twitch won't have an overwhelmingly negative impact on its balance sheet. And there's no denying Twitch is wildly successful.

A report earlier this year makes it clear just how big Twitch is: Over 43% of all live streaming done in the U.S. was Twitch-related, and nearly 60% of its users spend over 20 hours a week watching themselves or others do their gaming thing. Why watching other gamers is so enthralling is a bit baffling -- only a true gamer could answer that -- but so, too, is the line of reasoning behind acquiring Twitch. Does it have a world of potential? Sure, but how much longer does Amazon get a pass from investors?

If it seems as though Amazon simply bounces from one huge potential opportunity to the next, it's because it does. You may recall that the past several years Amazon has been building out its distribution centers across the country, and spending wildly to do it, with plans to open its fifth such facility in California alone. With a total of 131 distribution centers worldwide, and plans for more, spending on infrastructure will continue to impact Amazon's bottom line.

But at least all that spending on new distribution facilities speaks to Amazon's core business. The Twitch acquisition? Seems more like one of Bezos' new toys, and he didn't stop after acquiring his new gaming site. Amazon recently announced its intention to go head-to-head with digital ad king Google, yet again, developing its own ad placement tool to assist prospective advertisers in placing spots on its site.

With 250 million shoppers on Amazon, it certainly has access to loads of customer data, data that it can use to help marketers target ads. Does online advertising make sense for such an extremely popular site? Sure, except when you combine it with gaming, smartphones, home delivery drones, cloud services, original video content, and the list goes on and on. Yes, all that sounds like Google, which has also been accused of stretching itself too thin at times.

Show me the money
It's a question that's been asked of Amazon for years: At what point will Bezos be held responsible for generating profits? With a stock price of around $340 a share, investors certainly don't seem overly concerned. And Amazon continues to generate more and more revenue, along with impressive free cash flow, but profitability goes out the window as Amazon continues to spend at an astounding pace. Last quarter was a perfect example. Amazon generated about $3.63 billion more than Q2 2013, that's the good news. However, total operating expenses jumped a whopping $3.73 billion last quarter.

And don't expect profits anytime soon, either. After losing $126 million last quarter, things are going to get worse in the coming quarter, not better, according to Amazon. Now factor in a $970 million acquisition, even more distribution centers, and entering new markets like smartphones and advertising, and Amazon's losses may extend well beyond the current quarter.

Final Foolish thoughts
Taken individually, Amazon's ongoing spending makes some long-term sense. Certainly, well positioned distribution centers will eventually reduce overhead by limiting delivery costs. It could also be argued that Amazon's phones, drones, ads, and all the other forays it's either in, or exploring, each have merit.

The question is: When does Amazon circle the wagons, and actually try and generate profits from its multiple, far-flung efforts? Bezos will tell you to continue being patient, Amazon isn't spread too thin because all these businesses will pay off in the future. But when, exactly, does Amazon's "future" begin?

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Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google (A shares), and Google (C shares). The Motley Fool owns shares of Amazon.com, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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