Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 231.19

-0.6%

12:36 PM EST

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To: umbro who wrote (11220)	7/22/1998 12:52:00 PM
From: RFF	Read Replies (2) of 164684

AMZN didn't get the $326 million in gross proceeds from the offering. The offering was of discount notes that won't start paying cash until 2003. This means that at most they received $150 million in actual cash. After paying off the other $75 million loan, that leaves them with at most another $75 million. This won't last them through the rest of the year. Another thing is that profit/loss does not equate to cash flow. AMZN will be spending a lot more cash (especially building all those brick and mortar distribution centers) then it will be posting in losses. The are in a pretty tight cash situation which many people do not seem to understand. Their standing as a top internet player will probably ensure them access to cash, but probably at a pretty expensive rate.

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