Investment in Amazon (NASDAQ:AMZN) is not for the Weak Hearted
Amazon.com’s (NASDAQ:AMZN) CEO, Jeff Bezos’ latest theory has startled analyst all over the world. Bezos has now shifted his focus towards generating more and more unrestricted cash flow per stock. The CEO believes his new idea may not give immediate results but it proposes greater achievements. The company has grown by almost 140% during the last 5 years despite Amazon’s recent setback. This continues to amaze the, “Standard & Poor’s 500 index”, as the company has managed to score 60% points.
The company is continuously introducing latest ideas and innovations, and these latest inductions are readily accepted by the consumers. In fact innovation is now-a-days deeply associated with Amazon entirely. Although the free cash flow idea proposed by Amazon (NASDAQ:AMZN) isn’t going as planned but the CEO has asked the viewers to wait for the idea for complete execution. After launching the strategy the company (NASDAQ:AMZN) generated some $4.30 per share through the free cash flow idea during the twelve month period lasting till July 2011.
However until now we see a lot of fluctuations in the amounts of revenue generated with an average per share price of less $3. Beside everything Bezos is still looking towards a successful beginning of this new strategy, in fact, he says that the proficiency of this new idea cannot be evaluated over a small period of years and he is looking forward towards long term success. This is the most important factor which is responsible in attracting investors towards Amazon (NASDAQ:AMZN).
The company’s plans aren’t short term; the plans are meant to function over a long period of time. Bezos has kept his approach quite simple and straight forward i.e. by increasing the reduction in prices; the company (NASDAQ:AMZN) can successfully divert attention of investors as well as consumers towards it and this in turn will produce the ultimate free cash flow. Whereas, after seeing Amazon’s (NASDAQ:AMZN) current position investors believe that Amazon can easily survive without further investments.
Then again, one can clearly see that the fate of the company rests upon Bezos’ idea. This means one has to be really careful before investing in Amazon (NASDAQ:AMZN). If things turn out as Bezos has planned, then investors would enjoy huge amounts of profits, however if the opposite becomes the reality and the idea fails, this might end up bankrupting many investors and leave the company collapsed. This somehow means that investment in Amazon (NASDAQ:AMZN) is actually investment in Bezos.
Although the twelve month trial the company requested, gave un-promising results however the investors are still positive owing to the company’s past results. Amazon’s (NASDAQ:AMZN) unique risk taking nature has always amazed analysts and continues to gather more and more faith towards the company stable future. Amazon has become the center of attention for many risky investors and has always stood up to their expectations. In fact the company is also playing its part behind the successful launches of the latest Apple (NASDAQ:APLL) products like the iPhone 6 and the Apple watch.