Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
Amazon generated about $2.9 billion in free cash flow in 2009, which was just before it really started to ramp up capital spending.

I find it interesting to note that a lot of observers have stated that
their earnings disappeared because they are spending that money on capex.
That would explain it from a cash flow point of view as you note, but
not an earnings point of view, since the only hit to current earnings
from giant capex is the current period's depreciation of those assets.
Unless they are buying stuff with a one year life span, that's seems
unlikely to be a good explanation for the bulk of the fall in earnings.
I haven't delved into it as it's so far from being an investment of interest.

FWIW my database shows free cash flow peaked at around $907m about when
earnings/share peaked around $3.25, then most impressively dropped to about -1.5bn.
Did you mean total cash flow $2.9bn?

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement