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om, Inc. Amazon’s initial business plan was unusual: the company did not expect a profit for four to five years; the strategy was effective. Amazon grew steadily in the late 1990s while other Internet companies grew blindingly fast. Amazon’s “slow” growth provoked stockholder complaints: that the company was not reaching profitability fast enough. When the dot-com bubble burst and many e-companies went out of business, Amazon persevered, and, finally, turned its first profit in the fourth quarter of 2002: U.S. $5 million, just 1ยข a share, on revenues of more than U.S. $1 billion, but the profit was symbolically important. The company remains profitable: As of September 2007, the accumulated deficit stood at U.S.$1.58 billion. Revenues increased thanks to product diversification and an international presence On November 21, 2005, Amazon entered the S&P 500 index, replacing AT&T after it merged with SBC Communications.

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