Amazon invested profits. For many years ago they could turn a switch and become profitable.
The share price kept rising while they were investing profits in expanding.
It's far from a fool proof way of doing things, many companies that prioritise growth over profitability wind up with neither, but Amazon managed it.
As for prices, no computer can work out my preference or not for a Mac over a PC, or a iPhone over an Android, or how much quality I will pay for in a bike. Prices reveal this.
Ludwig von Mises said this was why Communism wouldn't work in 1920. He was right.
You misunderstood what I meant about prices. My point is prices compress everyone's preferences and ability to pay into a single scalar. It seems we can do better no?
The share price kept rising while they were investing profits in expanding.
It's far from a fool proof way of doing things, many companies that prioritise growth over profitability wind up with neither, but Amazon managed it.
As for prices, no computer can work out my preference or not for a Mac over a PC, or a iPhone over an Android, or how much quality I will pay for in a bike. Prices reveal this.
Ludwig von Mises said this was why Communism wouldn't work in 1920. He was right.
https://en.wikipedia.org/wiki/Economic_calculation_problem