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Re:Apple made more profit in three months than Amazon has ge... by KKKKkkkk1 on Saturday May 12, 2018 @04:03AM (#17052997)
Money spent on building new services and infrastructure is not profit, it's expense. By either GAAP or dictionary definitions.
Re:Apple made more profit in three months than Amazon has ge... by kgwgk on Saturday May 12, 2018 @05:19AM (#17053193)
I’m not sure if that’s what you’re tring to say, but in the case of Amazon the money being spent in building infrastructure is the profit. The (after tax) profit from yesterday is spent on capital assets today to increase profit in the future (and depreciation of these assets will be deducted from future profits).
Re:Apple made more profit in three months than Amazon has ge... by kgwgk on Saturday May 12, 2018 @06:59AM (#17053461)
Or more precisely, the profit is part of the money being spent on capital assets. Because they spend much more: the $10bn non-cash charge from depreciation (but that’s “maintenance” capex), the $4bn they “save” by paying employees with stock (essentially a capital raise), they also raise debt ($17bn last year, mostly to acquire Whole Foods) and many assets are not purchased but leased.