Among Amazon skeptics, patience for the online retailer’s lack of profits has become a source of bemused agony. No other marquee tech company could get away with, at best, earnings in the low millions (to say nothing of ending last year in the red). Despite such low numbers, Amazon’s shares have enjoyed unprecedented success over the last few months.
But the past few days have seen the onset of what could turn into what the short sellers would see as a major correction. If so, it’s not only shareholders who could suffer. A major stock downturn led by investors no longer willing to wait for Jeff Bezos to work miracles could eventually mean higher prices for Amazon customers.
To understand why, first consider the fortunes of one of Amazon’s main rivals.