The Secret behind AMZN Success
Market Valuation: $1 Trillion
Ironbound Buy-Side Valuation: $800 Billion
Ironbound Assessment: Seattle based Amzon.com Inc., founded in 1994, is an American multinational e-commerce technology company. Our upside valuation is $3 Trillion or 10-times the $300 Billion in average sales between 2019 and 2021. We like Amazon and believe the secret to the stock’s success is clearly defined in the first line of their 10K SEC filings: “We seek to be Earth’s most customer-centric company.” Followed immediately by their four guiding principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.” Companies with that level of focus guarantee stakeholders’ long-term success. Unlike comparable e-commerce retailers, Amazon Web Services (AWS) generates the biggest untapped blue ocean opportunity. In 2021 e-commerce reported 47% of sales, $222 Billion, all the while AWS accounted for over half of the consolidated $33 Billion in profits from only $62 Billion in AWS sales. Overall revenue is forecasted to more than triple and surpass $1 trillion within the next five years.
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