We really don't have enough information to predict whether Amazon will get into a cash squeeze. My guess is that it will not, but investors need to make their own judgments. I can say that Amazon is a marvel. They rose 68 percent last year alone, with purchases by more than 20 million registered users. Moving from the position of only selling online books, Amazon has successfully branched out.
Inventory is staggering, prices are low and service is remarkable.
International sales doubled. Bottom Line Amazon's only problem is that it has not made a profit, but these are still early days. For the principal thing that hath been the destruction of most plantations hath been the base and hasty drawing of profit in the first years. Amazon chief executive officer Jeff Bezos says that the company turns a profit on book sales. But, clearly, it cannot thrive on books alone.