Amazon.com has outgrown the perception, created during the dot-com crash, that it could never make money, but it still challenges the faith of its investors. For the past two years, the online retailer has invested heavily in new technology, wiping out some of the profit gains it displayed since first moving into the black in 2003. In 2006, CEO Jeffrey Bezos plunged Amazon into digital media with an online movie service called Amazon Unbox. Bidding to become a 21st century digital utility, it is also moving into new markets that have nothing to do with retailing, such as paid services that allow other companies to tap into Amazon’s vast data storage and computing resources. But those investments have yet to pay off. As a result, the online retailer’s profits fell by half last year despite surprisingly strong sales of $10.7 billion, up 26% over the year before. Investors will have to be patient a while longer.
|Sales Growth Rate**|
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|Total Return||Past 12 Months|
|Past 36 Months
|Economic Sector||Consumer Discretionary|