Time to short AMZN to Low 40′
situation right now. Current Liabilities are 1,936 million
cash+equilants are 1,004 million, marketable securities=661 million=total 1,665 million. They are short by 271 million.
But account receivable= 384 million. If they receive the account receivable on time they are ok. But if there is any problem there AMZN is in trouble meeting obligations. In that case they may have to start liquidating inventory of 735 million. Some of that inventory may not be good may have to sell cheaply or written off. This is the cash crunch problem of AMZN. In a lousy economy; they definitly have trouble. The real problem is market cap of 34.5 BILLION for assets of less than 300 million. Stock could tumble if there is liquidity CRISIS or SALES going down. AMZN is showing profits by one time items such as Lower tax, forex conversions and juggling Depreciation, FCF, stock based compensation expenses, cap exp.
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