PT Barnum Bezos does it again: "Amazon's Revenue Largely in Stocks
SEATTLE (AP) - A sizable portion of Amazon.com's revenues from
partnerships with other e-commerce companies was in stock, not cash,
according to a recent company filing with the Securities and Exchange
Commission.
The online retailer said Friday that, despite the recent dismal performances of
many Internet stocks, its cash flow would not be affected.
The SEC filing, made earlier this week, revealed that of the $24.3 million the
company received in the second quarter from partner Web sites, only $4.2
million was in cash. The rest was in equity in the form of shares of stock.
Share prices for those businesses, including struggling outfits like Pets.com
and Drugstore.com, have fallen sharply this year. Drugstore.com, for
example, closed Friday at $5.438, well off its 52-week high of $67.50 set
last fall.
Amazon.com does not have to record a profit or loss for the equity on its balance sheet unless it decides to sell
its shares or a company fails completely, however.
According to Amazon.com investor-relations specialist Tim Stone, the company treats such investments as both
an asset and a liability on its balance sheets.
Because of that, a loss in value of a partners' stock does not reflect badly on Amazon's revenues.
``It's treated like any other investment,'' Stone said. ``It doesn't hurt our operational cash flow as long as we
keep it.''
While Amazon.com beat Wall Street's loss estimates for the second quarter last month, it fell short of analysts'
revenue estimates, which sent Amazon's stock down more than 17 percent at one point.
Shares of Amazon.com were up $1 to $32.50 in trading on the Nasdaq Stock Market, a few dollars above the
company's 52-week low of $27.875.
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On the Net: amazon.com |
