I think kenji is expecting Charlie Rose to use the term free cash flow instead of profits. He thinks that the layman watching a TV show will quibble about what the difference between the two is. Also, he does not understand that while the former can be spent the latter is some abstract figure (GAAP) all of which may or may not be able to spent.
"can be spent the latter is some abstract figure (GAAP) "
Lol abstract ok, only if we could have non-gaap be the standard, the world would be an amazing place.
Greg, you said profits, not free cash flow. Profits is profits, as in earnings, as in simple terms all the money left from your revenue after all the costs. Please let me know how you arrived at the $10 billion figure of profits.
When will AMZN have earnings of $10 billion a year? Since PE depends on earnings to be real, and all succesful companies eventually have PEs of 15-30.
obviously, they didn't have enough free cash flow to not have to hit the bond market last year for $3 billion. And it's gonna come again in my view ahead. Bob Olstein does not agree with you that AMZN is operating in a positive free cash flow postiion right now. I think tapping the bond market supports that assertion no matter what you say. Inventores are very high and comptition will be very highs this Holiday. AMZN sells alot of this deal stuff more than high margin stuff for them and they ship it away over cost when the overall operation is added up. People like buying stuff below cost and they provide that, especially for the $79 a year free shipper go into the black against AMZN quickly.