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Amazon is perfectly profitable. AWS being more profitable does not make the ecommerce unprofitable. Also profit is a financial formula derived from actual opera
by manigandham 7y ago
Amazon is perfectly profitable. AWS being more profitable does not make the ecommerce unprofitable. Also profit is a financial formula derived from actual operating costs and margins.
Free cash flow has nothing to do with positive or negative cash flow, it is the payment cycle of AR vs AP that gives them a very big buffer to work with. Also you can't claim that they have very little space for growth and then discount the very subsidiary that's growing fastest.
Reinvestment isn't some made up argument, the company has been taking gross profits and reinvesting into expansion for decades. It's what they do best and it's crystal clear in the financial performance. Claiming that Amazon is insolvent (do you know what that means?) except for a single subsidiary is ridiculous and seems to indicate a failure in understanding the business or accounting.