In the Amazon 2001 Q4 fund letter, Amazon (AMZN, Financial) was highlighted for its strategic shift towards balancing growth with cost efficiency, which resulted in significant profitability during the fourth quarter. The company achieved a pro forma operating profit of $59 million and a net profit of $35 million, marking a notable turnaround. This was driven by a combination of price reductions and cost improvements, which helped reaccelerate sales growth, culminating in Amazon's first billion-dollar quarter. The letter also emphasized the company's international expansion, with sales outside the U.S. growing by 74%, and the success of its Marketplace, which accounted for 15% of U.S. orders in Q4 2001.
"Our focus on cost improvement makes it possible for us to afford to lower prices, which drives growth. Growth spreads fixed costs across more sales, reducing cost per unit, which makes possible more price reductions. Customers like this, and it’s good for shareholders. Please expect us to repeat this loop." — Jeffrey P. Bezos, Amazon 2001 Q4 Fund Letter
Read full letter at gurufocus Amazon 2001 Q4 page.
