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Bad example. New factory is an asset, not an expense. Therefore it will have little impact on profitability.
by lubos 11y ago
Bad example. New factory is an asset, not an expense. Therefore it will have little impact on profitability.
- deleted 11y ago[deleted]
- simonh 11y agoThe AWS data centres aren't an asset? I'd have thought comparing funding expanding Amazon's data centre capacity from revenue is very comparable to Tesla building out it's manufacturing capability the same way.
- discodave 11y agoThe DCs are assets with 5-20 year lifespans but the servers depreciate over 3-5 years. Amazon has also been doing a bunch of capital lease shenanigans so they could expand AWS without having to report GAAP losses over the last few years.
- fabulist 11y agoGenuinely curious, who sells, rebuilds, or otherwise "end of lifes" a datacenter after 5 years?