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They do, when they run out of runway. But a well-calculated reinvestment strategy, like Amazon's, can have a very low burn rate and so a very long runway.
by brainwad 5y ago
They do, when they run out of runway. But a well-calculated reinvestment strategy, like Amazon's, can have a very low burn rate and so a very long runway.
- varjag 5y agoAmazon operates for soon 3 decades on global scale, without making a profit as you say. Can't possibly imagine where that long a runway is coming from; maybe the crux here rather is some creative accounting.
- brainwad 5y agoThey made a profit globally for the last two years. But for many years they were very careful to expand neither so fast they went bankrupt, nor so slow they would waste investor money on taxes.
- lotsofpulp 5y agoIt comes from successfully expanding into more and more businesses and delivering the numbers investors desire (probably including the defined pension funds of the very countries being talked about in this thread).
- varjag 5y agoI like the phrasing, but perhaps if Amazon subsidiaries paid their due tax, they'd be a less attractive investment vehicle and would have had less capital to successfully expand.
- brainwad 5y agoThey _do_ pay their due tax. It's not tax evasion to reinvest in new business areas. Corporate income tax is levied on net profit precisely to encourage economic development in a country, instead of economic extraction.