Amazon's Free Cash Flow Swung $26 Billion in the Wrong Direction. The Stock Rose 15% Anyway.
Why would investors cheer an e-commerce giant that just burned through billions of dollars?
Overview
Amazon (NASDAQ: AMZN) reported its second-quarter results on Thursday afternoon, and the release carried a figure that can scare investors off: Free cash flow for the trailing 12 months came in at an outflow of $7.6 billion. A year earlier, that figure was an inflow of $18.2 billion.
The market barely blinked. Shares of the e-commerce and cloud computing giant closed up about 15% Friday, at around $271 -- near the top of their 52-week range.
Details
So investors watched a company report negative free cash flow and bid the stock up double digits. I don't think they're wrong.
Source
Originally published at www.fool.com.
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