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To put it a bit more clearly, your stock only makes you money if Amazon keeps growing No, I think you have it incorrect. As long as revenue > costs and interna

To put it a bit more clearly, your stock only makes you money if Amazon keeps growing No, I think you have it incorrect. As long as revenue > costs and internal expenditures, you make money by dividends. That's the whole reason we buy stocks. Price growth is ultimately just a projection of the belief in higher future dividends.

m_fayer 9y ago
Many tech stocks pay very little in dividends or none at all, even if the company is quite profitable. In tech it's all about share price.
- Sargos 9y ago
  That's because they are growing at a large rate. When that growth stops the only option they will have is to pay dividends. The investors make money either way.
  - teemwerk 9y ago
    There's also buybacks, which has mostly been tech companies' weapon of choice when it comes to capital return.
teemwerk 9y ago
I don't want to split hairs because you are correct, and this isn't really directed at you. I'd just like to point out that if you believe in roughly efficient markets, if your enterprise maintains its value, if you amass a pile of cash, that will be reflected in your share price. The dividends come directly out of that share price whenever issued. You can theoretically amass a pile of money that would make Smaug blush, and this will increase your share price to reflect. But that cash isn't being reinvested, it's only going to increase linearly with respect to that cash position. Which is why in many circumstances investors frown upon it.