6 ms·
It’s hard to compare to other businesses because amazon cannot capitalize R&D. If they spend $1bn on software dev and Tesla spends the same amount on a factory,
by formercoder 7y ago
It’s hard to compare to other businesses because amazon cannot capitalize R&D. If they spend $1bn on software dev and Tesla spends the same amount on a factory, Amazon’s ebitda is down $1bn and Tesla’s is only down ~$100M.
- fjsolwmv 7y agohttps://www.thetaxadviser.com/issues/2016/may/deductibility-of-some-computer-software-development-and-implementation-costs.html https://www.thetaxadviser.com/issues/2016/may/deductibility-... Says software is capitalized over 3-5yrs. The difference is that software dev costs usually grow smoothly year over year but gigafactory launches are spiky