20 for 1 Amazon Stock Split | Cloud Computing and E-Commerce | Stock Analysis

Hi! In this video I did a stock analysis for Amazon, which is one of the biggest suppliers of international cloud computing, web services, and E-commerce in the world. Amazon recently announced a 20 for 1 stock split along with a $10 billion stock buyback. Amazon's stock has fallen by about 14% in the last three months, which could present a potential buying opportunity or a red flag to sell their stock. I used a discounted cash flow model on Microsoft Excel to figure out what the intrinsic value of Amazon would be based on the projected free cash flow for the business. I looked into Amazon's income statement, Amazon's balance sheet, and Amazon's cash flow statement to get a sense of how much debt they currently have as well as if they'll grow their profits in the future and also to identify what a good buying price would be for Amazon from a value investing perspective.

Amazon

Revenues
Retail sales - They offer consumer products through their online and physical stores.

Third-party seller services - They offer programs that allow sellers to sell their products, and fulfill orders through Amazon. They make money this way by charging commissions and fees for their seller services.

Subscription services - Amazon’s subscription sales include fees from Amazon Prime memberships and other non-AWS subscription services.

Advertising services - They provide advertising services to sellers, vendors, and content creators through sponsored ads, display advertising, and video advertising.

Amazon Web Services - They sell their AWS at a stand alone price, which provides storage and other services.

Growth Strategies
Their goal is to reduce their variable costs per unit and work to leverage their fixed costs. Variable costs include product and content costs, payment processing, preparing orders for shipment, transportation, customer service support, costs to run AWS. Their fixed costs include the costs necessary to build and run their technology infrastructure, to add features to their online stores, and optimizing their fulfillment networks and facilities. To decrease their variable costs on a per unit basis they’re trying to increase discounts from suppliers.

Investing in technology including expanding AWS to increase its applicable machine learning capabilities, processing power and data storage. This is all to help towards their goal of becoming the world's most customer centric company.

Income Statement
2021 Operating Margin: 5.3%
2020 Operating Margin: 5.9%
2019 Operating Margin: 5.2%

2021 Net Profit Margin: 7.1%
2020 Net Profit Margin: 5.5%
2019 Net Profit Margin: 4.1%

Balance Sheet
2021 Debt to Asset Percentage: 67.1%

OPTIONS TRADING VIDEOS

- Collecting Credit using Call Debit Spread Explained: https://youtu.be/DZ8sEDIgJ7g

- Long Straddle Explained: https://youtu.be/31bYVBtmqfw

- Long Iron Condor Explained: https://youtu.be/PA-UwuqWVjs

- THE DANGER OF SPREADS: https://youtu.be/M2t4hRkATwg

- Protective Collar Explained: https://youtu.be/2iVbsMGSC2A

- Short Iron Butterfly Explained: https://youtu.be/BSLccBb1Shk

STOCK ANALYSIS VIDEOS

- 20 For One Google STOCK SPLIT: https://youtu.be/lUyz1pWJwrQ

- EPAM SYSTEMS DOWN 60%: https://youtu.be/jCG1CdGrZyU

- ZOOM Intrinsic Value Analysis: https://youtu.be/3WrVKTu8bPE

- Nvidia Down 30%: https://youtu.be/ncn-09iMVag

- Shopify DROPS 62%: https://youtu.be/iHSwKg9uyPc

- Meta DROPS 35%: https://youtu.be/fskWqiVJQm0

HOW TO READ FINANCIAL STATEMENTS VIDEOS

- Cash Flow Statement Explained: https://youtu.be/LyYoikPkpHQ

- Stockholders Equity Statement Explained: https://youtu.be/Vs_UI4G3zME

Amazon 2021 Annual Report: https://www.sec.gov/Archives/edgar/data/0001018724/000101872422000005/amzn-20211231.htm#i10ffcc0db5d74ac5a2de7ca2ad731f50_85

Amazon Official Website: https://www.amazon.com/
Amazon FBA: https://sell.amazon.com/fulfillment-by-amazon
Amazon Web Services: https://aws.amazon.com/

Amazon announces 20-for-1 stock split, $10 billion buyback: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html

0:00 Intro
0:28 20-for-1 Stock Split
1:58 Amazon’s Revenue Streams
3:08 Income Statement
6:08 Balance Sheet
6:52 Cash Flow Statement
8:02 Discounted Cash Flow Analysis

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