I think the issue here is that their PE ratios are > depreciation period. Like they're purposefully not factoring in long term costs to their valuations. Or they are but investors aren't
This basically proves my point. If it's only their catalog that has value at this point, then we're admitting 100% devaluation of the platform they built.
Depreciation is income
I think the issue here is that their PE ratios are > depreciation period. Like they're purposefully not factoring in long term costs to their valuations. Or they are but investors aren't
Netflix streams from Amazon AWS for their service
So it is only their catalogue which is losing value over time.
I've not gone through their accounts but I expect that cost has been re-couped (I might be wrong).
As for Amazon
Summary
https://www.forbes.com/sites/jasongoldberg/2022/02/04/amazon-reveals-its-most-profitable-business/
Actual filing
https://ir.aboutamazon.com/news-release/news-release-details/2022/Amazon.com-Announces-Fourth-Quarter-Results/default.aspx
This basically proves my point. If it's only their catalog that has value at this point, then we're admitting 100% devaluation of the platform they built.
I'm not rebutting your argument but I recall two additional maxims
Content is not King
Andrew Odlyzko (2000) - AT&T Labs - Research
which advised me to build infrastructure and not make videos - my fortune via YT lost :)
and
Joel Spolsky's advice in June 2002
meaning if you make infrastructure - give away the content and make it worthless
So it is interesting that Google followed this advice