How long do long term investors have to wait for consistent profitability?
Math time... $126M loss / $19B revenue = 0.66%, less than one percent loss for a quarter. The company is worth about $140B, so the quarter's drop is less than a tenth of a percent, meaning absorbing a the loss is a tiny decrease in a large bucket. In contrast, the skittish investors yesterday cost the company about $12B compared to the $126M business loss. The skittish investors who cause huge overnight drops like this create opportunities.
We're not talking about a company that is hemorrhaging money. It isn't a company plagued by mismanagement. It is a company that since their first day built a track record of tinkering with models. That is all Amazon has ever done. They have the resources to continue operating when they discover unprofitable ones. It takes money to make money, and many tests and changes cost time and money. Yes, some investors refuse to see the long term and demand a profit every single quarter. Other investors see this as an opportunity to buy or to hold.
Last night they took a 10% drop because short-term investors are skittish. Today you can buy it at a 10% discount; so thanks skittish investors!