Through The Fly's Eyes: Amazon.com

from Theflyonthewall.com











Amazing Results From Amazon

Amazon.com (AMZN), the global Internet on-line retailer, reported amazing results once again. Some of the 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%

What is also interesting, from a company that is reaching its high-growth phase perspective, is that Amazon's shares outstanding for the past year are down 2%. WOW! Typically, the opposite is true and shares outstanding goes up to reward employees with stock options.

Another interesting point is Amazon's forecast for triple digit ROIC, which is a very similar path 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.

Stay with Amazon as it enters its hyper growth phase.