• Episode 15 | Amazon’s Financial Future: Navigating Growth, Debt, and Maintaining the Day 1 Culture Under CEO Jassy

  • Oct 3 2024
  • Length: 28 mins
  • Podcast

Episode 15 | Amazon’s Financial Future: Navigating Growth, Debt, and Maintaining the Day 1 Culture Under CEO Jassy

  • Summary

  • In Episode 15 of "Market News with Rodney Lake," Rodney Lake, Director of the GW Investment Institute, reviews Amazon's recent financial performance, focusing on the increased debt levels on the balance sheet since Andy Jassy took over as CEO. Lake examines the company's trajectory, highlighting a significant rise in free cash flow—now nearing $50 billion—after a dip in 2021 and 2022. While Amazon's balance sheet remains stable with an interest coverage ratio of 11 times, Lake raises concerns about the company's future debt trajectory and ongoing valuation, currently trading at 33 times forward earnings. With Amazon Web Services continuing to dominate, Lake scores the company a solid 7.5 to 8 but emphasizes the need to monitor management's ability to innovate and maintain the “Day 1” culture. Tune in to learn more!

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