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Discounted 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
by clavalle 11y ago
Discounted 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.