 Amazon has been having negative free cash flow for the past four quarters. Is this the sign of the company weakening? If you want to find out more, then keep on watching. Hi everyone, I'm Okaili. This is Chloe and welcome back to my channel. The only one place for you to learn about stocks, investing, as well as options. If it's the first time of you coming, remember to hit the notification bell as well as the subscribe button so that you will not miss out any of my future investment updates. An early thumbs up is also appreciated because it will tell you to algorithm that you find this video helpful and it will help to push up to more investors to inspire them to start investing safely. At first glance, it may seem worrying that Amazon is losing money because its free cash flow was down more than 870% in Q3 2022. But a deeper dive into the company may reveal a different insight. Amazon, like many big tech companies out there, has a negative free cash flow because it heavily invests in growth opportunities. You may be wondering, why does free cash flow matter? It's important to investors because it shows how much cash the company has at its disposal. It's calculated as cash from operation minus capital expenditure. If a company has a lot of free cash flow, that means it has a lot of flexibility in terms of wanting to reinvest into the business, repay debts, pay out dividends, and even do share buy back. So let's take a look at what happened to Amazon's free cash flow. As you can see, Amazon has been having negative free cash flow since Q4 2021 because it has been investing heavily in building new fulfillment center, data center, and other infrastructure to support the growth of the company, be it in terms of the e-commerce side of the business or the cloud computing side of business. But the key is, it's the spending justifiable. Now the reason why Amazon is spending so much to build up more infrastructure is due to the pent-up demand created by COVID-19, as you can see from its operating income. It jumped from $14.5 billion to $24.8 billion in a short two years to ensure that the company is able to catch up with the demand, Amazon has been spending massively to build up more data centers, more fulfillment network, and thus resulting in the negative free cash flow. But as demand normalizes with the borders reopening, Amazon finally see its growth slowing. Investors who were once hopeful of the continuous growth became disappointed and quickly dumbed the stock, causing Amazon's stock price to drop as much as 40% in just one short year. But is the business performance of Amazon really that disappointing? If you look at the latest data based on TTM, the operating income as well as the net income fell back to almost the pre-pandemic level, but it is still way higher than pre-2017. So the business itself did not become worse, in fact, it just normalized back to the pre-COVID level. At the same time, based on the current valuation of P90, it is actually pretty close to 2018 and 2019 PE ratio as well. So the current valuation is only slightly overpriced. And if you look at the stock price of Amazon, right now the stock has fallen back to the 2018 and 2019 level, which was around $90 per share. So why do we need to look at all these comparisons? Ask yourself, has Amazon grown as a business in the past 3 to 4 years? And do you believe that Amazon will continue to grow from here? If your answer is yes, then the current stock price of Amazon may just be presenting some investing opportunities for you to hold on in the long run. Plus, if you know how to use options, you can even use BOSS option strategy to promise to buy Amazon at a cheaper price, at the same time collecting wonderful passive income. For example, by promising to buy Amazon at $90 per share, you will get to collect about $262 USD in 1 month. That gives you an ROI of about 2.8% in 30 days. However, make sure you do your due diligence before making any form of investment decision. And in this brand new 2020, nothing beats educating yourself and learning how to invest safely so that you can seize the opportunities that market is giving you. If you are new to options, and if you are wondering how to use options to take advantage of different opportunities that market is giving you, be it sideways, bull market or bear market, then make sure do join us in our upcoming free options masterclass, where we will share with you 3 different option strategies for you to take advantage of. All you need to do is to click on the link around this video and register for your free spot. In the meantime, make sure do follow my Telegram channel so that you can learn more investing insights. With that, I will see you in the next video. Arigato and happy new year.