Amazon is the e-commerce giant that is absolutely crushing the retailer industry. The company is supplying almost everything that you can dream about – food, clothes, furniture, jewelry and more. Imagine if on the Christmas when you were a kid, the drone would deliver your present, not a fucking Santa.
Besides enjoying Amazon as the customer, you can build the fortune with this stunning company. That is why you should consider Amazon stock investment.
Amazon Initial Public Offering and After
When the Internet startups were booming, Jeff Bezos founded Amazon in 1994. Amazon back then was known as just the online bookstore. In 1997, the company officially went public on NASDAQ. The initial price of Amazon stock was simply $18. In just 2 years, AMZN surged above $100 per share. At that time, nobody expected a big pile of shit looming.
Even during the dotcom bubble period of 1999-2001, resulting in the stock market crash, Amazon managed to survive. However, it was still damn painful, as the stock experienced the 94% drop in the value. Just try to imagine how Amazon share in your portfolio sink from $106 to $5.97 in two years. Amazon shares were going up and down for the 8 consecutive years after the dotcom bubble burst. Thereafter, Amazon began its crazy stock rally.
Now, 1 share of Amazon is worth $946, although for a momentum the stock price exceeded $1000. Moreover, Amazon Inc is currently the fifth largest company in the world in terms of market capitalization – $474.41 billion. You can definitely say that Amazon stock is fucking pricey, and sure it is. Nonetheless, investing in Amazon is still worthwhile. In terms of fundamentals, Amazon absolutely rocks. For example, Amazon EPS for the year 2016 was 4.9, while the company also generated $136 billion in the revenues.
Will Amazon exceed investors’ expectations further?
Amazon is expanding with quite an aggressive business strategy. It gets all the retailers, even Walmart, sweating fucking hard. Amazon is conquering different industries. By the means of multiple acquisitions and partnerships, Amazon is significantly enhancing its position in the market. Recently, Amazon sealed the $13 billion acquisition of Whole Foods Market, an extremely successful supermarket chain. Likewise, in June 2017 Amazon officially confirmed the partnership with Nike. This is the first step for Nike to sell their goods on the Amazon platform.
Taking all this into account, we are quite bullish on Amazon and the direction that the company is taking. Before you decide to invest in Amazon shares, let’s see what will drive this stock higher for the years to come.
The first thing to mention is the key company’s profit driver – Amazon Web Services (AWS). This is the largest cloud platform across the world. It already lends a great deal of storage space to the clients like NASA, Netflix and so on. Just to give a bit of stats, AWS revenues jumped from below $1 billion in 2011 up to $12.2 billion in 2016. It’s just getting started to become Amazon’s cash cow.
Another notable thing is Amazon Prime. This is the membership package that provides the subscribers with the free shipping, lots of discounts, cloud storage, streaming video and now Prime Wardrobe. The last one allows trying and returning clothes purchased online for free, fuck yeah. Amazon Prime membership is already quite popular in the US, but the company is also searching for the international growth opportunities. By increasing their presence on the global scale, they will make even more monies on Prime services.