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 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.
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
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.)
Decent little website. There’s got to be a few Mercado-Libres hidden in plain sight from Europe:
Growth slowing down in 2022
In 2021, ecommerce revenue in Europe grew by 13 percent to 718 billion euros. The growth rate remains stable, increasing slightly in the past year. For 2022, forecasts show a continued upward trend. Growth is expected to slow down, though, with a growth rate of 11 percent to 797 billion euros.
In 2021, revenue grew by 13 percent to 718 billion euros.
Although revenue grew, online purchases dipped slightly in 2021. Last year 73 percent of European internet users shopped online, down from 74 percent in 2020. According to the report, consumers are more careful in their spending due to the war in Ukraine, inflation and supply chain issues. In general, ecommerce is receding to pre-pandemic levels.
With interest rates rising and corporate earnings taking a hit, some companies are looking for ways to cut back on their cloud spending.
Amazon Web Services and its partners highlighted ways for companies to get more out of their cloud spending at the AWS Reinvent conference in Las Vegas this week.
The National Football League is looking for ways to save money as it negotiates the terms of a renewed agreement with AWS.
With interest rates rising and corporate earnings taking a hit, some companies are looking for ways to cut back on their cloud spending.