Amazon’s profit strategy?

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Almost daily, Amazon announces that it is entering another new venture. How do they do it, since they have yet to show profit that supports their share price?

Questions:
1. After reading the article, do you think that Amazon with stay with a discounter form of commerce?
2. How do you think Amazon accounts for the $2,600 shipping lost on the cookie machine that they ship for free? What accounts do you think are affected in the transaction? (Take into account the prime member ships.)
3. Amazon is reportedly losing up to $1 billion a year on its streaming video service. What do you think the company’s business strategy is here? How do you think they plan to sustain this offering?

Source:
Streitfeld, David. (2013). Sales Are Colossal, Shares Are Soaring. All Amazon Is Missing Is a Profit, The New York Times, Oct. 21 (Retrievable online at http://www.nytimes.com/2013/10/22/technology/sales-are-colossal-shares-are-soaring-all-amazoncom-is-missing-is-a-profit.html?pagewanted=1&hpw&_r=0)