4 ms·
The main reason that the analysis is flawed is that Amazon just funnels their profits into R&D which hides it in plain sight. Last year they spend 45 bn USD on
by oezi 5y ago
The main reason that the analysis is flawed is that Amazon just funnels their profits into R&D which hides it in plain sight. Last year they spend 45 bn USD on R&D which is 10% of their total revenue and double their profit.
- quickthrowman 5y agoIt’s not hiding profit, it’s reinvesting in growth… Amazon is saying to investors that they think they can give investors a better return on cash by reinvesting it into Amazon than distributing it to investors to put to work elsewhere.
- rightbyte 5y agoAre there not tax reliefs on RnD? It is more likely they hide operations as RnD.
- oezi 5y agoI don't think they are. Operations are reported separately. They are just having R&D 50% bigger than Google.