Talk about a tiny profit margin.
Amazon.com (NASDAQ:AMZN) expects to earn a maximum of $10 million next quarter -- on $15 billion of revenue. That works out to a less than 0.10% profit margin.
In the video below, Fool contributor Demitrios Kalogeropoulos discusses what's been dragging down the e-tailer's profits. Demitrios argues that even Amazon's preferred metric, free cash flow, has been falling lately, as huge investments in the online streaming market, cloud services industry, and tablet devices overpower earnings growth. That spending could become a problem, he says, if Amazon begins to prioritize competition in these new markets over investments in its core retailing business.