Sunday, January 08, 2017

A growth machine

Galileo Russell reports at Seeking Alpha on the incredible growth of Amazon.
Summary

Amazon is a growth machine that has scaled revenue from $500K in 1995 to ~$140B in 2016.

P/E ratio doesn't do any justice to valuation. Amazon is cognizantly reinvesting all profits into getting bigger.

Operating cashflow on pace to rise 51% in 2016.

Founder Jeff Bezos still owns 17% of the company and has proven his ability to strategically reinvest Amazon's operating cash flow.

2018 revenue and operating cash flow are on pace to hit $200B+ and $35B+, respectively, paving the way for a $1T valuation.
Go here to see graphs, videos, and read more.

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