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with its upcoming "lord of the rings: the rings of power," amazon has shot an arrow through previous records for tv-series expenses. the wall street journal reported friday that the fantasy property's first season will cost a cool $715 million. the $465 million first-season cost surfaced last year, when new zealand news sites cited government data about the rebate amazon would earn based on its production expenses.
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even if amazon has $54 billion in cash and cash equivalents on its balance sheet, spending billions on buybacks while burning cash would be unsustainable. to completely reduce the effect of possible shareholder dilution in 2023 (assuming 1.65% dilution), amazon would have to buy back 169 million shares, which would cost $16.9 billion at a $100 share price. this demonstrates that amazon currently has enough capital to offset shareholder dilution for three years, which is not much. this reinforces to me that unless the company's cash-producing capability is restored, investors should not expect large buybacks. based on my past research on the company, i believe there will be a significant change in this, maybe as early as 2023. if the company starts generating positive fcf again, i expect it will continue share buybacks to reduce dilution from present levels. amazon uses sbc by granting restricted stock units (rsus) to its employees. one rsu typically symbolizes one share of the company, which will be "unlocked" by the recipient after working for the company for a predetermined period of time beginning on the award date. this is the so-called vesting term, which typically lasts four years (as in the case of amazon) and is divided into smaller time spans.
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super guides bundle promo amazon kept pushing forward investments in several different industries, which all fueled phenomenal growth, making them profitable every year since 2014. however, in 2022, the company experienced its highest net loss yet, at $2.7 billion. this loss can be attributed to their status as the biggest advertiser in history, among other reasons.
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