We’ve previously looked at the absurdity of Amazon’s business model. After Amazon announced its fourth quarter results, Matthew Yglesias thought of a theory as to why the company does things the way it does. He writes:

“Amazon, as best I can tell, is a charitable organization being run by elements of the investment community for the benefit of consumers. The shareholders put up the equity, and instead of owning a claim on a steady stream of fat profits, they get a claim on a mighty engine of consumer surplus. Amazon sells things to people at prices that seem impossible because it actually is impossible to make money that way.”

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Source: Slate