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Amazon.com, Inc. (AMZN) Might Be Sweet-Talking Investors To Cover Its Losses

Amazon.com, Inc. (NASDAQ:AMZN)’s CEO, Jeff Bezos, does not disclose data about his firm’s deeds. The company’s financial reports do not even hint how many Fire Phones have been sold, how big was the demand for Kindle devices, not even the number of customers for Amazon Prime Service. The Guardian is pointing at the fact that shareholders could use some more information regarding their investments’ faith.

Amazon Video Streaming Deal

In its second quarter report, Amazon.com, Inc. (NASDAQ:AMZN) declared an increase in sales of about 23%, up to $19.34 billion. Operating cash flow surged approximately 18% to $5.33 billion and free cash flow reached the value of $1.04 billion, from last year’s $265 million. But the last value seems to be the result of accounting for Amazon.com, Inc. (NASDAQ:AMZN)’s purchase of space and property in Seattle, Washington, of $1.4 billion, a fact which makes the change in free cash flow during the year for the same homologous quarters to be a negative $601 million.

The negative trend can be also observed in the fact that Amazon.com, Inc. (NASDAQ:AMZN)’s net loss was $126 million, compared to 2013’s number of $7 million.  In the highlights section one does not see numbers that could help picture where did the business’ money come from and where will it be directed.

Judging by the aggressive spending and negative profits, the company acts mostly like a startup. But it won’t stop soon, as it announced guidance for operating loss to be somewhere in between $810 million and $410 million. The e-commerce giant seems to still be seeking market penetration in any form possible, and the release of Amazon.com, Inc. (NASDAQ:AMZN)’s latest Kindles and services tend to fortify the above suggestion.

Jeff Bezos might have engaged in duplicitous strategies of exposing data about the company to keep investors unaware of the actual situation, it can be inferred from the complicated manner company’s financial  results are presented. However, this might serve just to win some time till actual numbers start working in Amazon.com, Inc. (NASDAQ:AMZN)’s favor, with little risk of any losses.

Disclosure:none

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