Amazon Is Now Bigger Than Exxon Mobil

Dave Kranzler dissects Amazon’s 8-K filing:

http://investmentresearchdynamics.com/amazon-dot-con-the-bezos-con-grows…

quotes:

“- AMZN’s overall profit margin on 90% of its revenues base – its product sales – is more or less 2%.

– For this investors are paying a 186x trailing p/e for a business with a rapidly declining growth rate and profit margins well below average for retailers

– the “free cash flow” number used in AMZN’s promotional slide is not a GAAP-derived number.

– If you strip out the ongoing cash outflows used for capital equipment and building expenditures by AMZN each quarter for the last four quarters, that “free cash flow” of $7.3 billion LTM shrivels down to $2.5 billion.   THEN, if you net out stock-based compensation for the trailing twelve months, which is a GAAP number, that Free Cash Flow metric of Bezos’ disintegrates down to just $85 million.”