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Investors do not always take a negative cash flow as a negative. For example, assume in...

Investors do not always take a negative cash flow as a negative. For example, assume in 2018 Amazon showed a loss of $124 billion and a net cash outflow of $262 billion from investing activities. Yet during the same year, Amazon was able to raise a net $254 billion through financing. Why would investors and lenders be willing to place money with Amazon?

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Answer:-   Because, As Amazon is under net loss but it successfully able to produce $ 31 billion from operating activities and most of the amount was from the delayed payment on inventories. And also an increase of $ 78 billion in Amazon's accounts payable. Another reason for lenders and investors willing to fund because they were able to get investing payments and it is a good sign for any company in there growth rate. For eg: In the same year the company almost paid $ 50 billion for purchasing of fixed assets for the company and this shows that the company is still growing and it is on the track. So by which lenders and investors interpreted Amazon would be able to produce positive net income in the future...

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