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Amazon's expansion masks enormous profitability

The conventional wisdom about Amazon is that its prices are so low that it earns no money. But Thomas Paulson, principal at Minneapolis-based Inflection Capital Management, points out that, when you strip out its enormous investment in itself, Amazon earns exceptional profits.

Data: Amazon's and Walmart's 10-Ks and 10-Qs, and Inflection Capital analysis; Note: Retail profit margin is before taxes, interest payments, and other adjustments including .com losses at Walmart. Amazon data only includes already developed markets, and not Prime Video, G&A or tech & content costs. Chart: Andrew Witherspoon / Axios