3 ms·
Am I missing something below? Equity = Sigma(Free-cash-flow) summed over time. In the case of AMZN, equity is about 43B. 18B of this amount is goodwill(intangi
by mckenna 7y ago
Am I missing something below?
Equity = Sigma(Free-cash-flow) summed over time. In the case of AMZN, equity is about 43B. 18B of this amount is goodwill(intangible vaporware). That leaves with about 25B real equity. And surprisingly, this 25B matches with FCF over the last 2 years(2017-2018). Which essentially means, cumulative FCF until 2017 was indeed 0. Numbers do seem to support the claim that AMZN was running on 0(averaged over time) FCF. Showing 1B in one quarter, -1B in another. But overall 0.
Whether 0 cumulative FCF means predatory pricing is a different question altogether. I'm not so sure about that. How would visionaries build big things, that need, and money? If AMZN loses it and acts monopolistic, I think people will respond by migrating en-masse. No one likes too much inequality. Jeff should do something about that image.