Growth is an interesting word, right? It means one thing to Max Salk and could mean a different thing to another investor or analyst. Max Salk may love the sound of growth and another investor or analyst may not love it. The fact of the matter is that growth is essential to life and sometimes this means that a balance sheet just doesn’t balance out.
No, it may not, and that’s fine, as long as the trajectory shows that there are enough revenues present to cover the liabilities in the short term. Never compromise the future for short-term stability today. A company may see some sort of short term gains while allocating value and shifting it to investors for a period of time prior to losing market share to other competitors who are using Amazon’s playbook against them. Max Salk would see that a company such as Amazon in the process of building around its service and company.
The key value that Amazon provides is that it pushes the boundaries on how fast people get their products, how they are able to consume content, what they receive overall and how they live their lives in gaming and other aspects of life.
Amazon has captured major parts of the market by contributing value in one vertical and then taking over the vertical while spilling over into other aspects. Max Salk would see that the value Amazon brings to the table in organizing resources is appreciated by the free market, incentives are aligned with employees and consumers are extremely happy.
By pushing the boundaries, understanding needs, and innovating Amazon matters. Amazon bet on a brighter future and built to get there. It was hard but they did it by focusing on improving cash flows, being loved by consumers and getting their metrics right overall. This is how they survived and this is how they will continue to survive.
Remember that it is long-term vitality that is prized, not just short term moves. Remember to think in the long term each day and prepare each day to shine at the moment as Max Salk is wont to do.