Earlier this month, the e-commerce giant Amazon (NASDAQ: AMZN) was the second company to reach a market value of $ 1 trillion. While the first company Apple maintained its market value of 1 trillion, the market value of the e-commerce giant declined. The current market value of the Amazon is $ 970 billion.
In 2010, the shares of Amazon, worth $ 120, reached $ 2,040 on September 4, when the company’s market value reached 1 trillion. Yeah. Investors have won a significant fortune.
You may not have heard of Amazon before. This company has been active in e-commerce for 15 years. So, how have the company’s share prices doubled in recent years? More importantly, is it still possible to make money from Amazon?
Let us immediately answer the second question: It is certainly possible to make money from Amazon and this company can still be the cornerstone of any investment portfolio. We’il take this in a few minutes. But let us begin with the question of how the company has reached a trillion-dollar value so you can see how strongly Amazon will affect your wealth.
Not so long ago, Amazon was nothing more than an ordinary company. Yes, it was an important e-commerce point. Founder and CEO Jeff Bezos was doing a pretty good job. But doing retail business on the Internet was not a very difficult thing to do. For this reason, Amazon has not been seen as a revolutionary company for a long time. (In 2010, while the company’s shares were at $ 120, Amazon’s annual turnover was around $ 35 billion.)
But this perception has changed almost two years ago.
First of all, unlike the businesses that provide online services via the Internet without a physical activity site, traditional retailers operating in physical stores began to miss their income and earnings expectations. For example, targets dropped from $ 90 to $ 50. Amazon continued to increase its revenue and earnings expectations (more than 30% annual revenue growth), and the company was determined to be seriously challenged.
Amazon has recorded its greatest progress in recent years through its retail chain Whole Foods , which it bought in the summer of 2017 . The company’s annual revenue reached $ 150 billion.
This move proved that Amazon could beat Target and Walmart. More importantly, it showed that Amazon could participate in all kinds of sales, including Whole Foods.
Amazon continues to make great investments in the business world. For example, they are a field of artificial intelligence that is expected to be a trillion-dollar market. The company is also looking for ways to strengthen its retail business: Echo & Alexa, a serious potential, is an example. Prime Video activities, which increase the company’s market share against Netflix, are also notable.
It should be said, however, that Amazon has not yet taken over the entire world. operating in 15 countries across the world, Turkey has a new target in the Amazon.
Amazon’s net profit in the last three quarters was over $ 1 billion.
Now we know that Amazon is not just an ordinary e-commerce company. A truly revolutionary company that will make more impact in the US economy and the stock market in the coming years.