>> You've got to spend big to earn big, Amazon's ongoing strategy reflected in its second quarter earnings, Jeff Bezos' online behemoth raking in nearly $40 billion in the second quarter. But reporting a 77% drop in profit as the company invests heavily in warehouses, video content, and fast growing economies, such as India.
It's planning a $14 billion takeover of upscale grocer Whole Foods, too. The company shares up nearly 41% this year, down in after hours trading Thursday, but that's no big deal, says Reuters correspondent Jeffrey Dastin.>> Investors do not appear to be extremely concerned about Amazon's profit miss and low forecasts going forward, because they trust its management to invest the money well.
This is a pattern they've seen before, this is something they've come to expect and that Amazon has huge sales but not a ton of profit. Shareholders are okay with it because Amazon continues to grow its sales and shareholders continue to be lavishly compensated by the stock going up and up and up.
>> The most lavishly compensated shareholder? Bezos himself, who for a brief moment Thursday before Amazon shares dipped, surpassed Bill Gates as the world's richest man.>> Wall Street thinks the opportunity of Amazon is boundless. Most of Bezos' wealth Is invested in the company he founded in Amazon. When you see him having about $90 billion, it just reflects that Amazon is now potentially gonna be one of the biggest grocery companies in the country.
And it's also a movie studio, and it's also an enterprise computing company through its Amazon Web Services divisions. It just reflects all the value that Wall Street thinks Bezos and his company have and will continue to create.