daleman

Is Amazon's Free Cash Flow Overstated?

Amazon began business in 1994. Fourteen years and it still hasn't made $1 of profit!!! Look at the ($1.2M) negative retained earnings as of 3/31/08. Any other business that didn't make a profit in over 14 years would have been out of business long ago. It will still be a couple of years before they truly earn their first $1 of profit. Compare that to the other internet pioneers who have made profit hand over fist like Yahoo, Google, EBAY etc. You have to hand it too Amazon for having investors/shareholders willing to have such a long-term vision for the company! Looks like it paid off.