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.

Expand chart
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

Why it matters: Walmart's gross revenue is far greater than Amazon's—$485.9 billion in 2016, compared with $136 billion for Amazon. And Walmart is earning big net profits now. But Amazon's higher margins — and its upward trajectory — are a signal for what could be coming down the road if CEO Jeff Bezos decides to start delivering more cash to shareholders.

By the numbers: After spending for expansion, such as developing its market in India, China and Europe, along with other costs such as taxes, Amazon earned about 16 cents on every dollar in 2016 sales, Paulson says. That is 140% higher than Walmart, Amazon's greatest competition at the moment, which compares with 6.8 cents of net profit before such costs (chart above).

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Trump pushes to expand ban against anti-racism training to federal contractors

Trump speaking at Moon Township, Penns., on Sept. 22. Photo: Mandel Ngan/AFP via Getty Images

President Trump announced late Tuesday that the White House attempt to halt federal agencies' anti-racism training would be expanded to block federal contractors from "promoting radical ideologies that divide Americans by race or sex."

Why it matters: The executive order appears to give the government the ability to cancel contracts if anti-racist or diversity trainings focused on sexual identity or gender are organized. The memo applies to executive departments and agencies, the U.S. military, federal contractors and federal grant recipients.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9:30 p.m. ET: 31,467,508 — Total deaths: 967,881— Total recoveries: 21,583,915Map.
  2. U.S.: Total confirmed cases as of 9:30 p.m. ET: 6,890,662 — Total deaths: 200,710 — Total recoveries: 2,646,959 — Total tests: 96,612,436Map.
  3. Health: The U.S. reaches 200,000 coronavirus deaths — The CDC's crumbling reputation — America turns against coronavirus vaccine.
  4. Politics: Elected officials are failing us on much-needed stimulus.
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  6. Sports: NFL fines maskless coaches.
Dan Primack, author of Pro Rata
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GoodRx prices IPO at $33 per share, valued at $12.7 billion

Illustration: Sarah Grillo/Axios

GoodRx, a price comparison app for prescription drugs at local pharmacies, on Tuesday night raised $1.14 billion in its IPO, Axios has learned.

By the numbers: GoodRx priced its shares at $33 a piece, above its $24-$28 per share offering range, which will give it an initial market cap of around $12.7 billion.

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