> 1) Their core business (the store) barely makes any profit. Their profit margins are razor-thin, and until recently operated at a loss IIRC.
The choose to do this. I read an excellent article on it some months back but can't find it again, but suffice it to say there is far more to their low margins than you think.
Yes - the general idea is they could monetize their business to get profits now, at the expense of future growth later. They write to their shareholders to be patient, so it's transparent.
The choose to do this. I read an excellent article on it some months back but can't find it again, but suffice it to say there is far more to their low margins than you think.