Amazon is a company of two sides - A high tech, high margin side, comprising its AWS, Advertising and subscription services segments; and its more traditionally known low margin, high volume stores and third-party seller segments. These two sides form a cohesive whole.
Amazon is a stock I am very interested in right now especially with the recent price drops that it has been experiencing since its 2Q25 results. A summary of Amazon as stated by Fiscal.ai: "Amazon.com, Inc.
️Business Overview Founded in 1994 as an online bookstore, Amazon has grown into a global tech powerhouse. Its business is now highly diversified, with improving margins largely driven by the rapid expansion of Amazon Web Services ( AWS ), its high-margin cloud segment.
Amazon offers a variety of products and services, not to mention they're a very competitive company that wants to become the #1 GO-TO BUSINESS for retail (Monopoly hungry machine) Books, Music, Videotapes Apparel, Baby product, and Consumer Electronics Health and Personal Care items Industrial and Scientific supplies Kitchen items, Jewelry, Watches Lawn and Garden Items Music Instruments, Sporting goods, and Tools Automotive items, and toys/games Services it offers such as Online shopping In-Person shopping Fresh produce delivery Primer membership which includes Unlimited music, shows, movies, with limited advertising Access to over 2 million ad-free songs Access to free games, in-game content, and a channel subscription to Twitch Access to thousands of e-books, audio books, and magazines Amazon live, where you can watch and shop deals Let's also not forget Amazon's next targets for the future of improving its Business into becoming the #1 Go-To Business for retail Amazon aims to offer a more integrated and seamless shopping experience through advancements in technology like AI, robotics, and drone delivery , while heavily focusing on sustainability by expanding its use of electric vehicles and carbon-free energy, further solidifying its presence in the grocery sector with Amazon Fresh, and continuing to prioritize fast and efficient delivery options across various product categories, including international markets. Amazon is currently actively exploring and expanding into sectors like healthcare (including telemedicine and online pharmacy), autonomous delivery (drone and self-driving vehicles), financial services (payments and potential banking), artificial intelligence and machine learning, the Internet of Things (IoT) through Alexa-enabled devices, and potentially even the luxury goods market , aiming to disrupt various industries with its established logistics and technology capabilities; essentially looking to become a more comprehensive "everything store" across different sectors.
Intro Amazon Web Services (AWS) continues to be the company’s most important profit driver. As enterprise demand for cloud and AI infrastructure grows, AWS has maintained strong revenue momentum and margin expansion.
Why Amazon? Amazon revolutionized the way consumers shop.
1. The Empire of E-Commerce + Everything Else Amazon is the unchallenged king of U.S. e-commerce , with over 37% market share — Walmart is still staring at the rearview mirror.
Key Takeaways Amazon’s earnings power is much higher than its reported profits - driven by 3P sellers, Advertising and AWS More growth to come from best-in-class customer experience, cross-selling and industry growth trends Continued reinvestment will suppress short to medium-term cash flows and hide profitability Operating leverage will drive revenue growth higher than fixed cost growth, and operating margins will increase. That growth will come from Online retail (and 3P), Cloud computing and advertising revenues Catalysts Business Catalysts Refocusing On The Core Businesses And Opportunities Will Improve Profitability Andrew Jassy’s 2nd shareholder letter from the 2022 annual report outlined the fact that Amazon is choosing to refocus on the core businesses and opportunities that they have long term conviction in.
Amazon (AMZN) stands at a pivotal moment in its evolution, with its Q-powered AI services set to revolutionize its growth trajectory. While Amazon has long been known for its dominance in e-commerce and cloud computing, it is the integration of artificial intelligence that positions the company for sustained growth and profitability over the next decade.
Amazon.com, Inc. 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 also provides AgentCore services, such as AgentCore Runtime, AgentCore Memory, AgentCore Observability, AgentCore Identity, AgentCore Gateway, AgentCore Browser, and AgentCore Code Interpreter. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.
