Amazon’s Growing Cash Pile: Time for Dividends? 💰

[Makomo]

Amazon attained a cash pile of over $100 billion this year which makes it in a good standing to join other big tech firms in share buybacks. However, the current account shows that the company has a considerable amount of liquidity even though, like last year, it has not paid dividends or engaged in a serious buyback activities; this year Amazon’s stock price increased by 20% Nonetheless, it kept the last year's profits for reinvestment. However, if FCF is expected to rise almost to $120 billion and currently, there is a $10 billion buyback program which has not been fully implemented, people start to question whether Amazon will start paying a dividend or increase the size of its buybacks. Though Meta, Alphabet, Nvidia have lately included or upgraded the dividends Amazon with its low margins and emphasis on the AI development might take longer to do so.

 

[diwataaa]

Amazon’s financial position is indeed strong, with a cash pile exceeding $100 billion and a significant increase in stock price. It’s interesting to note that, despite this, the company has not yet pursued significant buybacks or dividends, focusing instead on reinvestment.

 

[Keith_]

Amazon's massive $100 billion cash pile has investors buzzing about potential dividends or buybacks, but with a $10 billion buyback program barely touched and a focus on AI, it seems Amazon's wallet is staying tight-lipped for now.

 

[Makomo]

Amazon’s financial position is indeed strong, with a cash pile exceeding $100 billion and a significant increase in stock price. It’s interesting to note that, despite this, the company has not yet pursued significant buybacks or dividends, focusing instead on reinvestment.

Totally agree! Amazon's strategy of reinvesting rather than buybacks or dividends is intriguing, especially with that massive cash reserve, thanks for the insight!

 

[Makomo]

Amazon's massive $100 billion cash pile has investors buzzing about potential dividends or buybacks, but with a $10 billion buyback program barely touched and a focus on AI, it seems Amazon's wallet is staying tight-lipped for now.

Thanks for the update! It’s interesting to see how Amazon’s holding onto that cash with a focus on AI instead of ramping up buybacks or dividends—definitely keeps us guessing! Appreciate the insight!