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Because that was the plan all along? At some point Amazon is going to get a return for all of its investment. The entire market is now dancing to Amazon's tun
by clavalle 11y ago
Because that was the plan all along?
At some point Amazon is going to get a return for all of its investment. The entire market is now dancing to Amazon's tune. Why not now?
- cylinder 11y agoThey don't seem ready to me. Seems like a temporary blip due to their investment schedules. They clearly have ambitions to build out a logistics infrastructure, and they haven't even setup in some obvious markets yet (Australia). Lots more growth to pursue.
- sitkack 11y ago30 million people over those distances? I wouldn't roll out in Au until driverless delivery.
- golergka 11y agoBecause they have an incredible opportunity to grow further right now.
- pbreit 11y agoBezos understands that the value of a stock is its discounted future cash flows.
- clavalle 11y agoDiscounted future /free/ cash flows. That's cash flow minus capital expenditures which means, at some point, Amazon is going to have to decide enough is enough and allow overall cash flow to come in well above its capital expenditures...like it's just done. Better a bit sooner than later (thanks to the discount part) if you think can sustain your advantage for less than you've been spending in proportion to your revenue. Perhaps Amazon has reached some sort of cruising altitude.
- brashrat 11y agoif we're going to quibble, it's "discounted /expected/ future cash flows"
- clavalle 11y agoMaybe I misunderstood him but I thought he was saying that as long as there were solid cash flows despite full capital expenditures that the stock would reflect those cash flows. Less of a quibble and more of a core misunderstanding of what cash flow means in that context.