Amazon.com (NASDAQ: AMZN), the global internet on-line retailer, reported amazing results once again. Some highlights include:- Free cash flow for the quarter was $700 million, up from $375 million last year, or up 86%
- Return on invested capital (ROIC) jumped from 23% to 39%, with the on-line retailer forecasting it to jump triple digits
- Revenue growth was 35%, with operating profit growth up 149%
Another interesting point is Amazon's forecast for triple digit ROIC, which is a very similar path Dell Inc (NASDAQ: DELL) followed in the late 1990s. During this period as Dell's ROIC ramped, the stock went through the roof for a good three or four years.
I'd stay with Amazon as it enters its hyper growth phase.
Warren Buffett, tells us more!
Oil has dropped $13, so gasoline should drop 30 cents, Americans hope
Wal-Mart's new Supermercado concept could be huge
Reader Comments (Page 1 of 1)
7-25-2007 @ 5:48PM
Michael Schneider said...
Amazon results were aided by Harry Potter fans, cost-cutting and a few other factors including sales of electronics. Amazon stock moved up around 25% at one time today and CNBC reported that it was the company's biggest one day move since its IPO.
Synopses of recent articles on Amazon and on Expedia are just newly posted in the Internet Stock Update section (green label, left side) at http://www.Barrelomoney.com.