Amazon.com, Inc. (NASDAQ:AMZN) is still a startup with a lot of volatility as such, according to its CEO Jeff Bezos, in a statement made Tuesday in a New York conference sponsored by The Business Insider blog. Making the comments after Amazon received a downgrade to “negative” from Moody’s, Bezos went on to defend Amazon’s culture as one of willingness to spend on novel projects, even if they fail big time like the Fire phone, the company’s unsuccessful venture into smartphones.
Seeing a decline in its shares by as much as 20% this year after a record high early in January, Amazon.com, Inc. (NASDAQ:AMZN) is grappling with investor dissatisfaction, and Moody’s has cited the company for lack of transparency regarding funds management in connection with its planned “debt offering”. Investors are particularly concerned about intensive investments that are not profitable. However, Bezos insisted that the company can still be profitable as it has been in the past, and although a loss of $437 million beset the company for the past quarter, in part due to the Fire phone, he said that it is still early to judge whether the device will be successful or not.Iterations, he added, may be needed.
“I’ve made billions of dollars of failures at Amazon.com. Literally,” Bezos said, going further that although such failures are not fun, it doesn’t matter either, as companies that don’t embrace failure can only make a “Hail Mary bet at the end of their corporate existence”. Of the company’s third quarter performance, which investors see as heavily ridden with significant fluctuations, Bezos stance is that it is not substantial at all, arguing that managing a company just to meet quarterly expectations is tantamount to a mistake. He also defended Amazon.com, Inc. (NASDAQ:AMZN)’s recent disputes with Hachette, which has now been settled, as something that is in line with the objective of promoting both a “healthy culture of reading”, as well as authors interests. According to him, lesser priced “book-lengthed things” will “make authors more money.”
Bezos noted that Amazon.com, Inc. (NASDAQ:AMZN) has its share of success stories, such as its hardware business that includes products such as the Kindle, Echo tabletop speaker, and Fire TV. Demand for these products have been crisp that the company have had “trouble building enough”, Bezos added.
This article has been written by Nonito Guntan.