Amazon's Debt Load Worries Investors

Admit it. You've been at parties or social functions at which a group of accountants, CPAs or financial professionals cussed and discussed the much-anticipated fate of Amazon.com. It's on everyone's minds as we still sort out the dotcom winners from the dotcom failures.

Amazon.com continues to be strong in the eyes of the consumer, but the investor side is a different story completely. The company's debt load increased from $1.5 billion in 1999 to $2.1 billion at the end of June, and the stock's value continues to fall.

Jeff Bezos, Amazon CEO, says consumers are ordering more from the online company, and marketing costs to obtain a new customer are far less than industry standards. So why, then, can't the company turn a profit?

According to Bezos, investors must wait and see a while longer, and continue to change the thinking from the traditional bricks & mortar scenario to an online environment.

But how long are investors willing to wait? AccountingWEB welcomes your feedback. How do you feel about the subject?

You may like these other stories...

Regulatory compliance, risk management and cost-cutting are the big heartburn issues for finance execs in the C-suite. Yet financial planning and analysis—a key antacid—is insufficient.That's just one of the...
Continuing its efforts to simplify accounting procedures, the FASB has issued a proposed Accounting Standards Update on customer fees paid in a cloud computing arrangement. The newly-proposed update (Intangibles—...
How are you planning? What tools do you use (or fail to use) for forecasting? PlanGuru is a business budgeting, forecasting, and performance review software company based in White Plains, N.Y. AccountingWEB recently spoke...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.