, Inc. (NASDAQ: AMZN) engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company’s products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees., Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.

finviz dynamic chart for AMZN

Company Overview

  • Market Cap: 1.851 Trillion
  • PE Ratio: 61.46
  • EPS: 2.90

Amazon, an e-commerce behemoth, looks perfectly positioned to thrive in the years to come because it has the world-leading online marketplace. However, Amazon generates very little of its operating income and cash flow from its low-margin online marketplace. The bulk of the company’s cash flow and income originates from its ancillary operating segments, which includes Amazon Web Services (AWS), advertising services, and subscription services. These segments have shown no signs of slowing down.

AWS is the world’s leading cloud infrastructure service platform. Enterprise cloud spending is still in its relative infancy, which bodes well for Amazon to sustain double-digit growth from this all-important, high-margin segment. Even though AWS generates only a sixth of the company’s sales, it was responsible for 67% of Amazon’s $36.9 billion in operating income last year.

Meanwhile, advertising services has sustained at least a 22% year-over-year growth rate, looking back to the September 2022-ended quarter. Amazon is attracting in excess of 2 billion monthly visitors, many of which are motivated shoppers. This affords the company exceptional pricing power from merchants who want to get their message(s) in front of users.

Subscription services is maintaining a growth rate of at least 13% on a year-over-year basis, too. Amazon surpassed 200 million global Prime subscriptions in April 2021 and has likely added to this figure. Prime is an invaluable tool that helps keep users within its ecosystem of products and services.

Therefore, Amazon is one of the best growth stocks to own for long term.

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