Amazon Stock
Amazon.com is primarily an e-commerce company founded by Jeff Bezos that provides the world’s largest market place. It is the world’s largest internet revenue generator and the second largest private employer in the United States. Amazon.com distributes a vast array of products and services through its website, including books, music, clothing, consumer electronics, lawn and garden supplies, and almost anything else that can be bought in a store.
Amazon.com also dominates the cloud computing arena through Amazon Web Services, and increased its brick and mortar presence through the purchase of Whole Foods Supermarkets in 2017.
Amazon’s Artificial Intelligence personal assistant Alexa is now used by hundreds of millions of customer owned devices and is being integrated by auto companies such as Audi, BMW, and Ford. Other services Amazon provides include Amazon Prime Video, which streams music and video to consumers; Amazon Studios, which produces original film and television content; Kindle, which allows authors to self-publish books; Amazon Business, which is a business to business marketplace; and a wide variety of other products too numerous to mention here.
What are Amazon’s financials?
In the Wealthy Investor program strong financial growth is the factor we use to determine stock owner for the long term.
The company posted Q4 2022 revenue of $149.2 billion, an increase of 9% year-over-year. Their North American sales increased 13% year-over-year to $93.4 billion, while Amazon Web Services contributed $21.4 billion, rising 20% from last year.
However, Amazon did lose $2.7 billion during fiscal year 2022. It was Amazon’s 20% investment in the electric automaker Rivian, whose value plummeted 82%, that negatively impacted their bottom line.
amazon.com clearly fits our Wealthy Investor criteria, but in this environment it is definitely a higher-risk stock.
Amazon 5-Year Chart
Amazon 3-Month Chart
