You're right that it's a more complicated process than it sounds, but it's been a common trick for ages. Apparently, however, in recent years, it has been focus

You're right that it's a more complicated process than it sounds, but it's been a common trick for ages. Apparently, however, in recent years, it has been focused on capex while still retaining the same fundamental idea. In the words of an a16z partner[1]: > So, though we can’t be sure, it looks like the capex is not going up because Amazon’s existing business has become more expensive to run, but because Amazon is investing the growing pool of operation cash flow into the future. All of this brings us back to the beginning - Amazon’s business is delivering very rapid revenue growth but not accumulating any surplus cash or profits, because every penny of cash is being ploughed back into expanding the business further. But, this is not because any given business runs permanently at a loss - it is because the profits from what is already there are spent on making new businesses. In the past, that was mostly in operations, but in recent years the investment firehose has again been pointed at capex. [1] http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-n...