Amazon “but no profit!” critics don’t appreciate how rare the business is that can effectively deploy (massively increasing amounts of) capital without using (questionable) buybacks and (questionable) acquisitions to soak up the excess.
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What makes AMZN capital deployment different than a crap acquisition? Both provide top-line growth. But both do not earn their cost of capital (ie. Earn profits)
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Cash flow from ops not relevant. Yes they have made a bit of net income. A bad acq'n still has a bit of net income attached to it too. Let's talk in 10 years
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Why would cash flow from ops not be relevant? Bezos is intentionally keeping gross margin low to take oxygen out of his competition and reinvesting in the business with great success. Why would you want to turn off a compounding growth engine?
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