He has done this by convincing investors that despite scant profits, the ample rewards of monopoly await.
This is where the flaw of these "information age" titans is exposed. They have plenty of great ideas and bring plenty of innovation to the marketplace, but the very nature of the industry makes it almost impossible to make any money. As one astute Wall Street investor once said, "I never like to invest in something that can be replicated in three days by a bunch of guys working in a garage somewhere."
If anything, Amazon's acquisition of Whole Foods should raise a red flag for investors -- for the following reasons:
1. Amazon has been built as a "virtual retailer" with no storefronts, and yet it made a move like this to buy a "brick & mortar" company that operates very differently than the company's existing business model.
2. The company exists as a mass-market retailer with market penetration all over the globe, but it decided to acquire a high-end grocery chain with limited appeal to most consumers.
This move almost reeks of desperation on the part of Amazon -- or at least a real stretch.
Amazon has been moving into the last mile a lot lately. With their own delivery drivers, drones. I see this as that, also they’ve been dabbling in groceries. And they make tons of money, they just reinvest it. At this point Amazon is an acquisition company, according to Crunchbase this is their 76th acquisition.