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The 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 sug
by markwkw 7y ago
The 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 7y 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.