$AMZN: Barron's Headline: Amazon Is Getting Back to Its E-Commerce Roots. The Stock Should Benefit

https://archive.ph/Gfeu8

But as Piper Sandler analyst Thomas Champion wrote this past week, AWS controls more than 50% of the cloud market and remains on track to hit the $100 billion revenue mark in 2023. That’s more than triple the level at Salesforce (CRM), which is growing at half the rate of AWS. Give Amazon ’s cloud unit a comparable valuation, and it would represent more than half of Amazon ’s current market cap of around $940 billion. And, as I argued in July, I think the business is easily worth more than that.

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Amazon’s revenue from online stores fell 3% in the March quarter and then 4% in the June quarter, before bouncing back to 7% growth in the September quarter. For the holiday period, Wall Street analysts project a flat quarter compared with a year ago. That seems alarming—most estimates for the holiday shopping season still project at least modest growth in overall online sales.

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But online stores are just part of the e-commerce story for Amazon. The company has an enormous infrastructure of warehouses and delivery workers, which power its third-party seller services business, as well as a growing advertising arm that helps Amazon sellers draw attention to their wares. The third-party business should reach $125 billion in 2023, while the ad segment should top $44 billion, more than a third the size of Meta Platform ’s (META) ad business.

$AMZN daily, weekly, and monthly charts

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Please keep posting AMZN charts. Seems like they’re on track to bust out soon… but who knows the direction?

AWS and ads doing well… ecommerce not so much.

I don’t own any now, but was fortunate to ride it from $300 to $3000. Not before. Not since.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

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$AMZN has turned into a virtual lifeline for those of us living deep in the jungles of the Florida Keys. It’s not a perfect company, but, I use it because I have to. This week, I begin to use Shopify as I have slowly been accumulating shares in it.

Also, $AMZN calls and puts are some of my faves because they have such high volume.

Yeah, I’ll post more of the $AMZN charts here. Build an $AMZN thread.

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I live in Europe and was an active Amazon customer between 2000 and 2017.
At that time very few people used Amazon over here. In the meantime competition has grown a lot and the terms offered by local companies are much more advantageous than the ones offered by Amazon. We buy online for thousands of $ every year, but almost nothing from Amazon. The Amazon model has been successfully copied in many countries and I don’t think Amazon will be able to regain the market share lost in recent years.
The competition that exists now didn’t exist a few years ago and I don’t think those who have adapted to the new conditions will ever return to Amazon

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I’d be interested in any details you’d care to share. What are the terms offered that are more advantageous? Faster delivery? Cheaper prices? Better selection? Something else?

I find the “Prime Delivery” a significant lock-in for our business; any other vendor an I have to pay shipping. (Of course I pay shipping from Amazon, too, in the Prime membership fee, but the volume I use is huge, so the cost is amortized over a larg base, plus I use other features of the membership, such as video & audio.)

Anyway, any additional info would be appreciated.

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Two questions for Clubbervision6:

  1. Would you be so kind as to supply names of firms doing Amazon’s work where you live?

  2. What European country is home?

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Exactly.

You (PT) and GH are thinking the same as I am on this subject.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.