Question Investing Activities

1. Calculate the Amazons free cash flows?
2. Discuss the change in cash flows from investing activities?
3. What assets did amazon buy or sell over 2016, 2017 & 2018? Indicate whether cash is being used to grow the selected company.

Amazon.com Inc., consolidated cash flow statement

In millions 12/31/2018 12/31/2017 12/31/2016

Purchases of property and equipment (13,427) (11,955) (7,804)

Proceeds from property and equipment 2,104 1,897 1,067

sales and incentives

Acquisitions, net of cash acquired, and other (2,186) (13,972) (116)

Sales and maturities of marketable securities 8,240 9,988 4,733

Purchases of marketable securities (7,100) (13,777) (7,756)

Net cash used in investing activities (12,369) (27,819) (9,876)

Amazon Acquisitions (23 companys 2016, 2017, 2018

Amazons top acquisitions

Whole Foods ($13.7B, 2017) dwarfs Amazons second-largest acquisition by more than 10x. The acquisition dramatically expanded Amazons brick-and-mortar footprint, as well as giving Amazon a much stronger position in grocery delivery that capitalizes on Whole Foods large and loyal customer base.

Ring ($1.2B, 2018) is a Wi-Fi-enabled doorbell that streams live video of a homes doorstep to a smartphone or tablet. The acquisition helped strengthen Amazons smart home offerings, and literally opened the door for Amazon couriers to leave packages inside customers houses.

PillPack ($1B, 2018), the most recent of Amazons 10 largest acquisitions, notably confirmed Amazons long-rumored entry in healthcare. The markets reacted accordingly, with share prices for several Souq.com ($580M, 2017), based in Dubai, gave Amazon a beachhead in the growing Middle Eastern market. International expansion remains a focal point of Amazons strategy, particularly in emerging markets. incumbent pharma companies diving nearly 10% on the news.

Amazon Annual Net Acquisitions/Divestitures

(Millions of US $)

2018 $-2,186

2017 $-13,972

2016 $-116