Amazon isn't really generating sufficient "real cash" and could run into liquidity troubles if top line growth stagnates.
The company is not generating sufficient value for its shareholders.
Amazon shares are priced for perfection and are overvalued.
The company is not generating sufficient value for its shareholders.
Amazon shares are priced for perfection and are overvalued.
The stellar growth of Amazon's (NASDAQ:AMZN)
top and bottom line in recent quarters, backed by the unprecedented
success of its cloud computing division, has not convinced everyone that
the company is infallible. Genuine concerns regarding the "quality" of
Amazon's cash flow and earnings have been raised by analysts, many of
whom also incessantly criticize Bezos' firm for not being able to
convert revenue into profit. In this article, I reexamine some of these
criticisms, while employing other standard tools to assess Amazon's
profitability. In addition, I'll also attempt to arrive at a fair value
for Amazon stock.
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