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They haven't needed outside capital because Amazon has been generating free cash flow since 2002 or 2003. They were losing money on a GAAP basis because they we
by Despegar 8y ago
They haven't needed outside capital because Amazon has been generating free cash flow since 2002 or 2003. They were losing money on a GAAP basis because they were investing in capex heavy things like warehouses and data centers.
Looking at Amazon's aggregate financials doesn't tell us anything about whether they're doing something anticompetitive.
- markwkw 8y agoThe root of Sussman's claim is that Amazon was hiding some expenses to _pretend_ that they were cash flow positive. (since being cash flow positive strongly suggests that there is no predatory pricing) <quote>However, Sussman asserts in his paper, “Amazon utilizes existing loopholes in Generally Accepted Accounting Principles (GAAP) disclosure regulations to exclude a significant portion of its expenses.”</quote> So the author is claiming amazon's _not_ been cash flow positive. If that is the case, then where was the money coming from?
- TulliusCicero 8y agoYeah, this is what I don't get. Amazon has been steadily growing without injections of investor cash for a long time now. If they were constantly selling stuff at a loss, that would be impossible.