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Thursday, March 22, 2018
Sustainability of Amazon model remains doubtful
ANBOUND

Having the market value of US$768 billion, Amazon has created the myth that a company can be unprofitable but still having high market value, but this will only happen in the U.S. capital market. In the long run, the development of any company cannot be separated from market laws and basic common sense. Evergreen companies have solid foundation because they have sustainable profit model, coupled with the support of the capital market. If the tide of excess capital starts to recede, it would be doubtful if the Amazon model can still be maintained.

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