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Amazon is a famous example of not maximizing shareholder value by reinvesting into R&D, no?
by astrostl 11y ago
Amazon is a famous example of not maximizing shareholder value by reinvesting into R&D, no?
- lrzhou 11y agoWhich shareholder? The guy in it for the long haul or the guy looking to flip the stock in a quarter. If Bezos had maxed profits on selling books, the market cap might have been the same as Borders at its peak. The key question is whether the projects are positive on some npv basis. Given bezo's track record, I see no reason to believe otherwise. Short term shareholders might disagree though.