The issue of debt for Amazon is an intriguing one. Amazon’s balance sheet has gotten worse in recent quarters, with working capital projected to go negative in the next quarter or two if the trend continues. The addition of debt would certainly inflate some balance sheet metrics right away, but the debt ratio would increase and get worse as it spends that money. Debt would also incur interest expenses, and Amazon isn’t the most profitable to begin with.
For now, I’m leaving Amazon in the short candidate bin because I think the debt issue brings up more problems than solutions, for now anyway. That doesn’t mean that you have to go out and short Amazon today, but there seem to be more reasons today why you would want to.
Cu dedicatie pt Razvan:)