The bull case for Amazon stock is based on the company's cloud computing business -- not the e-commerce business. As the economy reopens, Amazon should be one of the biggest beneficiaries of accelerating digital transformation.
Amazon Web Services saw a revenue increase of 39% year over year in third-quarter of 2021. This was the third consecutive quarter of accelerating growth.
One complaint is that Amazon's profitability is extremely suppressed compared to its long-term potential. This is because Amazon continues to investing in its overall business. As an example, Amazon's fulfillment network has nearly doubled by the end of the third quarter of 2021 compared to before the pandemic began.
Without considering this, a profitability valuation metric like price-to-earnings would appear inflated. Don’t let that fool you.
Amazon Web Services saw a revenue increase of 39% year over year in third-quarter of 2021. This was the third consecutive quarter of accelerating growth.
One complaint is that Amazon's profitability is extremely suppressed compared to its long-term potential. This is because Amazon continues to investing in its overall business. As an example, Amazon's fulfillment network has nearly doubled by the end of the third quarter of 2021 compared to before the pandemic began.
Without considering this, a profitability valuation metric like price-to-earnings would appear inflated. Don’t let that fool you.
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- E commerce Amazon
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