Amazon's (AMZN -0.5%) first debt offering since 1999 will reportedly include bonds with...

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Matt Blecker Comments (162)
 
Running out of cash?

Total cash down from $9.58 billion as of 12/31/11 to $5.25 billion as of 9/30/12.

Year-over-year looks bad as well:

Cash down over $1 billion on 9/30/12 compared to 9/30/11 and current liabilties up to $12.61 billion on 9/30/12 compared to $8.98 billion on 9/30/11.

But the company will be profitable and margins will improve after they are done expanding rapidly. Yup.........whatever dude. When will that be? 2020? 2050? 2100?
26 Nov 2012, 10:16 AM Reply Like

idkmybffjill Comments (561)
 
Matt, valid point, but it's a great time to issue debt with the low interest rate environment we have now.
26 Nov 2012, 10:19 AM Reply Like

Joe Eifrid Comments (235)
 
Hmm...I guess when you can't make money with $57 bil in annual revenues you have to take on debt so you can expand, so you can make up those losses on every sale with volume.
26 Nov 2012, 10:35 AM Reply Like

Joe Springer Comments (1227)
 
Wow. Somewhere in Portugal a keyboard is getting a good rogering.
26 Nov 2012, 11:59 AM Reply Like

Akimbe Comments (40)
 
Who will blink. Can AMZN wipe out all competition before the spigot of cash (stock/debt issuance) runs out?
26 Nov 2012, 01:06 PM Reply Like

coastrebel Comments (3)
 
The latest rating I can find for Amazon's debt is from 2009 when S&P rated them investment grade.

How safe would purchasing these bonds be?
26 Nov 2012, 02:14 PM Reply Like

krk Comments (576)
 
Got a decent AA- rating by S&P on this debt offering.
That means, first two years interest expense on this $2.5BB debt would be about $45 million/year?
Net earnings past 4 quarters: $40 million.
26 Nov 2012, 02:20 PM Reply Like

idkmybffjill Comments (561)
 
Interesting point...hmm.
28 Nov 2012, 08:33 AM Reply Like