Give Amazon Some Respect
The first solid comment came from "Felix Urman." Here's the gist of it, lightly edited:
You do realize that Amazon's cash only increased because
itissued $3 Billion in debt, right? ... with Reed Hastings having MSFT connections, I wouldn't bet against MSFT or another deep pocketed suitor to buy out/take a stake in Netflix if only to force Amazon to burn more cash as it now competes against MSFT in the cloud and tablets, google in the cloud, devices and shopping, and Apple in everything.
And, here's the second one from somebody who goes by northernlimits:
Put another way Amazon needs Netflix. As content purchasers, price becomes everything. As we all know pricing power vs pricing cost is a balancing act that needs many in the competitive pool to maintain the pricing balance that provides liquidity, profits and value for the consumer. Sometimes it is in your own best interest to have a weaker competitor / partner to maintain that balanced eco-system.
That's why I get up at four in the morning -- to help initiate these conversations.
These comments come at the issue from different angles, yet both address notions of competition and spending. I agree with everything in comment number two, but respect both takes equally. Each adds to the conversation; it's not the same old, tired lament of AMZN's P/E.
First, I do realize that Amazon took out $3 billion in debt. Mea culpa. I probably should have mentioned it in my article; however, in all seriousness, I don't consider it relevant to the story.