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Originally Posted by theducks
Just look at the list of Amazon companies at the bottom of their web page .
That list does not include some infrastructure companies,
I know of a few within a few miles of here.
I am not against Big Dividends, but company long-term survival is important.
IMHO Wall street has destroyed more perfectly good companies with their incessant "Grow or you are a failure'.
Somethings will always be needed. A company that can continue to make product (economically) to fill those needs is successful in my book, but they need to still watch the horizon and shift as needed.  Why have buggy whips sales fallen? |
Eventually investors want return on their investments. That's normally either dividends or ever increasing stock price. Amazon's stock price really grew over a 5 year period, peaking a year ago. It will be interesting to see if it can regain that peak.
Amazon's big issue is that it's one thing to be investing in growth, it's something else when your operating expenses are eating up your profits. For the last couple of years, Amazon has been having issues with increasing operating expenses. That's why people have been putting out articles talking about this issue. It's also why Amazon has been trying to put the squeeze on their suppliers. One of the problems with giving customers free stuff is that the money to pay for that stuff has to come from somewhere.