Amazon-Forever Growing

Amazon Inc is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.Amazon went public on May 15, 1997, and the IPO price was $18.00, or $1.50 adjusted for the stocks splits.Amazon originally started as a online book shipping service by Jeff Bezos but has now diversified into various sectors such as e-commerce and almost holds an oligopoly position in many sectors.

Amazon currently trades at 3510-3530 $ with a market cap of around 1.78T $.Amazon is one of the industries that has seen exponential gains during the pandemic. Although, most consumers are only aware of their e-commerce offerings but Amazon offers cloud computing services and also subscription services such as Amazon Prime.They also partner with brands to release special edition products and also provide advertisement services.

Amazon is rapidly growing with a 12-month price forecasts for Amazon.com Inc have a median target of 4,000.00, with a high estimate of 5,000.00 and a low estimate of 3,775.00. The median estimate represents a +13.74% increase from the last price of 3,516.84.Analysts also point out that the stock prices may plummet stating reasons such as a plateauing sales growth while others argue that EPS trends tells a different story with a predicted EPS of 51.6$ for FY2022-23.

The key strategy Amazon is relying on is expansion and diversification.They plan to move all operations in house to reduce costs.This has been seen recently when Amaon acquired the Northern Kentucky Airport and purchased 73 aircraft for transportation of its goods.Amazon has also started opening physical stores in metropolitan cities to better their efforts in their goal of reduction in dependency.Amazon is also expanding their own product lineup : the Alexa home appliances and increasing services such as Prime Video and Prime Music.They are betting heavy on AI and drones with an estimated 21B $ put into the development of drones for last mile shipping of their packages.They are readily increasing their hold in the cloud computing space as well when they overtook Google and Azure back in 2019.One of the key assets that Amazon harvests is the data.They have all the data about the performance of a particular product in every market and can launch a rival product thereby forcing other businesses out of the market.This has been a matter of grave concern and there has been some controversy regarding this strategy coined ‘The Solimo Strategy’ which was first noticed when sales of clothing brand John Miller started to decrease meteorically.Amazon has also been surrounded with controversy regarding the tax avoidance and alleged manipulation with the Trump administration.Despite all these happenings, Amazon has a strong hold on the markets and has good future expectations.The sheer scales that Amazon operates on is the main reason as to why they are profitable.