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Wall Street is now comfortable with the idea of very long-term tech investing and multiple consecutive years of no profit generation... This is what Amazon has
by whoisjuan 9y ago
Wall Street is now comfortable with the idea of very long-term tech investing and multiple consecutive years of no profit generation...
This is what Amazon has been doing for 20 years.
People don't buy Netflix stock because they think it's gonna be profitable tomorrow, but rather because they expect it to be so dominant that when they start generating profits, they would be massive.
- jjeaff 9y agoAmazon is generating plenty of profit for investors. And the best kind of profit too, capital gains. Why pay out dividends to your investors with after tax money that will be taxed again at a higher rate when you can just stash it overseas and buy more capital assets and let the stock grow in perpetuity. Same with apple. As an investor, you don't need dividends, you just sell a few shares each quarter.
- kgwgk 9y agoApple does pay a dividend. And gives even more money to shareholders in the form of buybacks. The total shareholder yield (dividends plus buybacks, divided by market cap) looks quite different for Amazon and Apple: https://advisortools.zacks.com/Research/Stocks/AAPL/Shareholder-Yield https://advisortools.zacks.com/Research/Stocks/AAPL/Sharehol... https://advisortools.zacks.com/Research/Stocks/AMZN/Shareholder-Yield https://advisortools.zacks.com/Research/Stocks/AMZN/Sharehol...
- jjeaff 9y agoThat's only recent. Post Jobs.