When Jeff Bezos was searching for a name for his new internet start-up back in 1994, he wanted something that was impressive and sounded big. You see, Jeff wanted to sell books at a discount on the Internet and size to Jeff was important. He believed that his small start-up in time, could effectively become a category killer for the likes of Barnes and Noble and Borders.
The name Jeff eventually decided on for his new start-up was Amazon (NASDAQ:AMZN), and like the mighty Amazon itself, whose mouth is growing an average of two meters every year, Jeff wanted volume. So what better name to choose since by volume, the Amazon River is the world’s largest river.
From books to everything else, Amazon (NASDAQ:AMZN) has become a juggernaut in the marketplace and now dominates sales on the internet. Jeff had all the stars aligned with his new company, the right name, the right concept and the right timing back in 1995 when Amazon opened its website for business.
Now CEO Jeff Bezos was not looking for quick profits or to flip his company, rather Amazon's goal was to grow free cash flow, basically cash from operations less all other charges. That is the key distinction for Amazon and one that separates it from other Internet and earnings-driven companies. As one Wall Street-er said, "Earnings are an opinion; cash is a fact."
Kudos to you Jeff, and thank you for providing a great stock to trade with our Trade Triangles.
Today, we will be analyzing the stock of Amazon (NASDAQ:AMZN) in detail.