Main article: Amazon
2024
Revenue growth by 11% to $638 billion, profit growth by 97% to $59 billion
Amazon revenue: Record $638 billion for 2024, + 11% YoY, + 24.1% for three years and + 127.4% for 5 years (revenue tends to slow)
Net profit: $59.2 billion in 2024, + 94.7% YoY, in 2021 there were losses, by 2019 an increase of 411%.
Operating cash flow: $115.9 billion, + 36.4% YoY, + 147.9% and + 200.9%, respectively.
Capital expenditures: $83 billion, + 57.4% YoY, + 30.4% and + 392.3%.
Dividends and bybek in the aggregate: zero, the company redistributes all resources into capex and business scaling.
Amazon has invested over $300 billion in capital expenditures to scale computing power since the beginning of 2020. For comparison, from the moment Amazon was founded to 2019 inclusive, the accumulated capital expenditures amounted to only $69 billion.
AWS makes 2/3 of the gains. Record-breaking capital expenditure in business history
Amazon's very strong Q3 2024 pf report, driven by the aggressive expansion of AWS. Amazon is increasingly integrating into the digital environment, delivering cutting-edge solutions and products in the cloud and AI segment.
Annual revenue reached an incredible $620 billion with growth of 12% YoY or 66 billion, where AWS contributed 15.1 billion to annual growth. Seems a little? The growth rate and marginality matters.
AWS division increased revenue 3.2 times over 5 years compared to revenue growth of 78% from online trading within Amazon (previously the main segment of the business), revenue growth of 3 times from services for third-party sellers and doubling revenue from digital subscriptions.
However, at this time, profits are generated mainly by AWS, forming about 2/3 of the annual operating profit of the entire Amazon structure.
By historical standards, revenue growth is modest, because by the moving comparison of revenue for 12 months in the period from 2015 to 2021, the growth rate was 20-40%, and the current 10-12% in the area of the historical minimum, but the slowdown is due to the base effect, since Amazon is on its way to become the most profitable company in the world, overtaking Walmart with revenue of $665 billion.
Walmart is a pure retailer, whereas Amazon is a highly diversified structure.
At this time, Amazon has three fast-growing business segments:
- advertising revenues with an increase of 1.5 times in two years (total revenue of 53.6 billion per 12 m),
- AWS is up 35% in two years (103bn) and
- subscriptions with growth of 27% in two years (43.3 billion).
The trading division, including partners, has revenue of $415 billion per year (2/3 of total revenue) and grows by 18% at the expense of partners (Third Party Seller Services, which gave an increase of 36.3%, while the main trading business grew by only 9% in two years).
Trading brings in only 10-15% of total operating profit, and the main contribution is provided by AWS and advertising.
Amazon's revenue for the 9 months of 2024 reached 450.2 billion, which is 11.2% above the level of 9m23, + 23.4% to 9m22 and + 133.1% to 9m19.
For 9m24, net profit amounted to 39.24 billion, which is 98.2% more than the level of 9m23, compared with a loss of 3 billion for 9m22 and + 371.7% to 9m19.
For 9m24, operating cash flow amounted to 70.2 billion, which is 65.3% more than in 9m23, + 299.6% to 9m22 and + 272.5% to 9m19.
Amazon has not paid dividends or repurchased shares, focusing on reinvestment and further growth.
Capital expenditures in 3Q24 amounted to $22.62 billion, reaching an absolute record in the entire history of mankind in one quarter!
For 9m24, capex amounted to 55.2 billion, which is 44.6% more than in 9m23, + 17.7% compared to 9m22 and + 377.7% to 9m19.
About 85% of capex goes to the AWS division and the expansion of the digital environment.
Amazon shows an example where you can not recycle cash into the market, but effectively reinvest, showing high growth rates and the accumulation of margins in promising directions.
Amazon makes everything it invests in development by eliminating shareholder policy entirely, minimizing merger and acquisition operations, concentrating on developing its own digital ecosystem.
Amazon is the only company among bigtechs that has relatively adequate multipliers, Spydell Finance wrote.
2023: Global leader in R&D costs and capital spending
Для Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
As of December 2023, investment in R&D at Amazon reaches an incredible $83 billion compared to Google - $43.6 billion, Meta - $37.8 billion, Apple - $30 billion, Microsoft - $27.2 billion, Merck - $24.7 billion, Intel - $17.9 billion, J&J - $15.2 billion, Eli Lilly - $12.2 billion and Pfizer - $10.7 billion
Above are all American companies, the cost of R&D for which exceeds $10 billion according to the latest reports.
For comparison, all Russian investments in R&D (state + commercial, combined with defense R&D) about $18 billion in 2023. Amazon alone is 4.6 times higher than all-Russian investments, i.e. the scale is huge, Spydell Finance wrote.
Moreover, Amazon ranks first in capital spending, which reaches $50 billion. For comparison, Exxon Mobil has capital expenditures of "only" 21.5 billion, and among the leaders in capex: Microsoft - $31.7 billion, Google - $28.8 billion, Meta - $28.6 billion, Intel - $25 billion.
Over the past 5 years, Amazon's capital expenditures amounted to $220 billion, and in R&D - $272 billion.
Amazon's AWS digital division generates under $100 billion a year (this level will be reached in early 2024) with a growth rate of 25-35% per year.
The secret to Amazon's success is simple - this company does not pay dividends (exactly zero divas paid for all the time) and does not meaningless dispose of cache in the market through byback, like Apple. In the first half of 2022, they knocked on 6 billion in baibek and calmed down.
All the money earned is reinvested in aggressive expansion in all areas where the digital segment is a priority.
2022
Increasing R&D costs
$96 billion cash on balance sheet
5th in the world in terms of capitalization
2021
Second place in the world in terms of net revenue - $470 billion
"'Net revenue"' (net revenue) - revenue for added value.
This revenue includes revenue costs such as discounts, returns, etc.
Net Revenue Formula=Gross Revenue - Directly Related Selling Expenses.
The company's accounts accumulated $96 billion
Third in the world among ICT developers by revenue
According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. Amazon ranked third on that list.
Amazon overtakes Walmart for first time in annual retail revenue to become global leader
In mid-August 2021, it became known that Amazon overtook Walmart and became the world's largest retailer outside of China.
The report, compiled by the financial research company FactSet, for the 12-month reporting period, which ended on June 30, 2021, users spent more than $610 billion on Amazon, which was facilitated by a sharp increase in demand during the pandemic. Walmart registered sales of $566 billion over the same period.
 | This is a historic moment! Walmart has been around for so long, and now Amazon is coming in with a different model and replacing them as the No. 1, "said Yuozas Kazyukenas, founder of market research firm Marketplace Pulse. |  |
Investors expected this retail relay to pass in 2024-2026, but the pandemic accelerated the indicated time frame, as people began to use delivery with greater frequency. Walmart's sales rose sharply during the pandemic, but it did not equal Amazon, which has added more than 200 new warehouses and hired about 500,000 workers since the beginning of 2020.
In 2021, Walmart sales grew by $24 billion. Over the same period, the total cost of sales at Amazon increased by almost $200 billion, analysts calculated.
A worker over Amazon's retail business, Guru Hariharan, said digging overshadowed Walmart by playing a different game. Walmart has tightened its grip on physical stores and the grocery business, but online purchases are growing much faster than physical stores, though they account for only about 7% of U.S. retail sales.
to trade KeyBanc Capital Markets retail analyst and managing director Edward Yruma, said Amazon has just begun to recognize the reality and full scale of its size.
That led analysts at investment banks like J.P. Morgan, BMO Capital Markets and Cowen to estimate the so-called gross value of the item by calculating how much shoppers buy on Amazon, whether the item comes from Amazon inventory or from a seller. Analysts make estimates based on data published by the company, such as the income it receives from sellers and the share of the trading platform in the total volume of units sold, as well as on the basis of its own research, and FactSet only collects and averages these estimates.[1]
2019
Amazon is the largest advertiser in the world
The largest advertiser at To the earth the end of 2019 is. Amazon He spent $11 billion over the year, which is almost 2% of the total advertising budget of the planet.
There is a schedule of Amazon expenses at the link - 10 years ago it spent less than a billion dollars a year, since 2009 the budget has grown almost twenty times[2].
Amazon has become the most expensive company in the world
Amazon's market capitalization on January 7, 2019 exceeded the same indicator of Microsoft Corporation, as a result of which the Internet retailer became the most expensive company in the world, Interfax reported on January 8, 2019.
As a result of trading, the price of Amazon shares soared by 3.4%, and the capitalization reached $796.78 billion. As a result, the company became the global leader in this indicator for the first time in its history, The Wall Street Journal noted.
For comparison, the market value of Microsoft on the same day increased by only 0.1% - to $783.57 billion. At the end of November 2018, the software giant overtook Apple in terms of capitalization, the market value of which in early August 2018 exceeded $1 trillion, and in early October - $1.1 trillion. According to the results of recent trading, this indicator of the iPhone and Mac manufacturer decreased by 0.2% - to $701.99 billion. Thus, as of January 7, 2019, Apple ranks fourth after Alphabet, Google's holding company, which has a capitalization of $745.63 billion.
As of January 2018, Berkshire Hathaway, Facebook, JPMorgan Chase & Co., Johnson & Johnson and Walmart are also among the top ten most expensive companies.[3]
2018
Amazon capitalization exceeded $1 trillion
On September 4, 2018, Amazon's market capitalization exceeded $1 trillion. As a result, the Internet giant became the second American company with this indicator along with Apple.
According to the Reuters news agency, at the September 4 auction, the value of Amazon securities rose to $2050.5, which ensured a capitalization of $1 trillion. By the close of the exchange, quotes stopped at $2039.51, which is 1.3% more than the previous day.
From the beginning of 2018 to September 4, Amazon shares rose in price by 74.5%, while Apple quotes during this time increased by 35%.
Investors rewarded Amazon for improving financial results: for example, at the end of July, Amazon reported a 13 percent increase in profits, which for the first time reached $2.5 billion. Both the retail division and the cloud business, which is actively developing and has a higher rate of return, have demonstrated a steady rise.
In nine years, Amazon's stock price has risen 20-fold. So, in 2009, about $100 was given for one security, in October 2017 - $1 thousand, and by the end of August 2018 - already $2 thousand. The company went public on May 15, 1997, placing shares at $1.5.
It took Amazon just over a month to catch up with Apple, which hit the one trillion mark in the summer of 2018. By early September, Apple's capitalization is approaching $1.1 trillion. At the same time, Amazon Corporation took 160 days of exchange sessions to increase the cost from $600 million to $1 trillion.
The first company in history with a trillion dollar capitalization in 2007 was the Chinese oil and gas PetroChina. However, then she failed to hold on to her positions due to the collapse in oil prices. By the beginning of September 2018, the company's capitalization is just over $210 billion.[4]
Leadership in Advertising Spending Growth
In early February 2019, Kantar Media announced a ranking of the world's largest advertisers. CNBC drew attention to Amazon's 72.5 percent increase in advertising spending (to $1.8 billion), which was the largest in the top ten. Read more here.
Amazon has become more expensive than Microsoft for the first time in history
In February 2018, Amazon became more expensive than Microsoft for the first time in history. This happened after the companies published financial statements.
During exchange trading on February 7, Amazon shares fell 1.14%, as a result, the market capitalization of the Internet giant decreased to $690.4 billion. However, Microsoft quotes sank even more - by 1.83%, leading to a decrease in capitalization to $690.3 billion. Thus, the cost of Amazon for the first time in all time turned out to be higher than that of Microsoft.
True, by the time the exchange closed on February 7, Microsoft was again ahead of Amazon. The next day, Amazon and Microsoft securities fell by more than 4.6% and 5%, respectively, by the end of major trading. Amazon's capitalization amounted to $650.8 billion against $655.8 billion from Microsoft, according to Nasdaq data.
In the three days after the release of the financial results of the fourth quarter and all of 2017, Amazon shares rose in price by 3.8%, while Microsoft securities lost 3.1% of their value. Such dynamics helped Amazon ahead of Microsoft in market value, but then the quotes of both companies began to decline.
In 2017, Amazon jumped 77% thanks to the company's skyrocketing retail and cloud revenue. The growth in the value of Microsoft shares over the same period was slightly more modest - by 42%.
Both Microsoft and Amazon are still behind Apple and Alphabet in market capitalization. By February 8, 2018, investors estimate Apple at $787.2 billion, and Alphabet at $697.9 billion.
From the beginning of 2018 to February 8, Amazon shares rose 21%, which is more than the growth rate of Alphabet and Microsoft. Apple quotes have dropped altogether.
Amazon's rise allowed founder and CEO Jeff Bezos to break away from Microsoft co-founder Bill Gates in the ranking of the richest people on the planet. By February 8, Bezos's fortune is about $116 billion, which is $25 billion more than Gates.[5]
2017: Amazon capitalization passes half a trillion dollars for the first time
On July 26, 2017, the capitalization of online retailer Amazon on the Nasdaq exchange for the first time exceeded $500 billion. Since the beginning of the year, the company's value has grown by $146 billion. On Wednesday, Amazon shares added 1%, reaching $1,050 per share as of 20:30 Moscow time.
Amazon became the fourth American company, which now costs more than $500 billion. Earlier, Apple, Microsoft and Google's parent company, Alphabet, crossed this mark.
Amazon founder Jeff Bezos, who owns about 17% of Amazon, may soon become the richest man in the world according to Forbes due to the growth of capitalization, ahead of Bill Gates. According to the Forbes online meter, the gap between the founder of Microsoft and Bezos has decreased to less than $1 billion. The fortunes of Gates and Bezos are $90 billion and $89.1 billion, respectively[6].
2016: Global cloud market leader with $12.22 billion in revenue
At the end of 2016, Amazon Web Services remains the leader in the cloud market with an operating profit of $3.1 billion with a total revenue of $12.22 billion (in 2015, revenue amounted to $7.88 billion).
2013: Return to profit after loss a year earlier
Amazon's 2013 revenue rose 22% to $74.45 billion. Net income - $274 million at the end of 2013 against a loss of $39 million for 2012.
2010: Revenue up 40% to $32.4 billion
The company's revenue in 2010 grew by 40% to reach $32.4 billion. The Amazon Kindle series of e-book readers is considered the leader among specialized reading devices in the United States.
2007: Revenue $14.835 billion, net income - $476 million
The company's revenue for 2007 is $14.835 billion, net profit is $476 million. Capitalization as of July 25, 2007 - $35.3 billion.
Notes
- ↑ People Now Spend More at Amazon Than at Walmart
- ↑ Amazon is' biggest advertiser on Earth'as adspend hits $11bn
- ↑ Amazon has become the most expensive company
- ↑ Amazon touches $1 trillion, on pace to overtake Apple
- ↑ Amazon's market value on verge of beating out Microsoft
- ↑ Amazon's capitalization for the first time exceeded half a trillion dollars
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