Added to YB: 2023-11-08
Pitch date: 2023-11-07
AMZN [bullish]
Amazon.com, Inc.
+87.77%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.
Market Cap
$2.9T
Pitch Price
$142.97
Price Target
N/A
Dividend
N/A
EV/EBITDA
17.26
P/E
32.11
EV/Sales
4.01
Sector
Broadline Retail
Category
value
Hunt for the 'Lost' Profit in Amazon Empire
AMZN: 1P biz operates near breakeven to drive market share while VABs (3P marketplace, AWS, ads) generate true profit. Peer model shows $22B normalized profit vs $8B reported—$13B 'missing' from consumer reinvestment & unaccounted bets. 3P now 60% GMV (vs 5% early 2000s), ads $43B rev growing 25% YoY (tracking Google/Meta trajectory). VABs worth $1.3T (ads $600B, US 3P $260B, AWS $460B) vs $1.5T EV—paying just $200B for proven incubator engine & intl upside.
Read full article (9 min)