For years, Amazon.com, which began as an Internet bookseller, had no profits and was incurring annual losses. Still, the stock market valued the company very highly. One reason for this was that investors believed that:
A) Amazon.com was in a winner-takes-all market.
B) Amazon.com faced fierce foreign competition.
C) the Internet was a perfectly competitive market.
D) on the Internet brand recognition is unimportant.

Question

Quizplus · Accepted Answer

Investors believed that Amazon.com was in a winner-takes-all market, meaning that once it established dominance, it could potentially capture a large market share and generate significant profits in the future.

For Years, Amazon