Amazon Q1 allowance for doubtful accounts $400 million - Business Insider

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Amazon doesn't expect to get paid for $400 million worth of last quarter's contracts, primarily for AWS, due to coronavirus-led downturn

While some cloud customers pay cash upfront for their contracts, many companies still prefer to pay at the end of the month or year based on the amount they used.

Dan Ives, an analyst at Wedbush Securities, said this trend may not be a big concern yet, but could become more common in the current recessionary environment. The impact could be more pronounced for AWS because Amazon's cloud service is considered to be more popular among cash-sensitive small businesses compared to other cloud providers.

 

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