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?
Voice of the Editor
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Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.