Why Amazon Is So Valuable

The video discusses how to measure a company's performance by analyzing cash flow and investment returns, using Amazon as a case study. It highlights Amazon's significant R&D spending and its impact on profitability and share price. The discussion extends to valuation metrics, accounting standards, and the treatment of R&D as an investment. The video also covers the risks and returns associated with R&D and compares Amazon's strategy to other companies like Walmart. Finally, it touches on the topic of share buybacks and their relevance to Amazon's investment strategy.

Why might lenders view R&D as a risky investment compared to physical assets?

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What are the implications of treating R&D as an investment for understanding a company's stock price performance?

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