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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)
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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.