Amazon Chief Bezos Says Free Cash Flow Trumps Margins
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Amazon.com Inc. Chief Executive Officer Jeff Bezos is more interested in rewarding investors through free cash flow than by boosting margins.
“Percentage margins are not one of the things we are seeking to optimize,” Bezos said in an interview with the Harvard Business Review posted online Jan 3. “It’s the absolute dollar free cash flow per share that you want to maximize. If you can do that by lowering margins, we would do that. Free cash flow, that’s something investors can spend.”