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.
Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google, and Netflix. The Motley Fool owns shares of Amazon.com, Google, Microsoft, and Netflix. 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.