1. Growth of high margin businesses providing upside to profitability expectations
2. Amazon's strategic use of Whole Foods to capture more share in groceries
3. The impact of a potential increase in shipping rates from the USPS
Read MoreAmazon: International and Margin Upside in Focus
It has been some time since I last wrote about Amazon. For a long period of time, between 2014 and 2015, Amazon stock was under heavy scrutiny as investors began to question the underlying profitability of the business. The problem was created primarily by a period of (what appeared to be) bad results, exacerbated by poor financial disclosures.
Read MoreAmazon: 3Q Results Demonstrates Ability to Grow Profitably
Going into 3Q results, investors feared that Amazon's recent string of strong results had led to impossibly high expectations for the company to achieve. However, Amazon's recently reported 3Q results managed to exceed even these expectations, with results that were strong across the board.
Read MoreAmazon: Amazon Surpasses Walmart; 2Q Exceeds Expectations
Back in mid-June, I wrote about Amazon's 38% stock increase on the heels of a strong 4Q and 1Q. Since then, AMZN reported blowout 2Q results, and the stock has increased another 34%, for a total of a 72% increase since January 29. Amazon's market cap now stands at $250 billion, surpassing Walmart's $230 billion market cap. What has led Amazon to surpass the largest retailer in the world?
Read MoreThe Two Factors Behind Amazon's Recent Stock Increase
Amazon stock is now up 38% since the company reported its 4Q results on January 29th. What has happened that has caused investors to re-evaluate Amazon's value?
Read MoreAmazon: Why Amazon's Recent Sales Deceleration is Not the Full Story
Most of Amazon's criticism centers around two things: its lack of profitability, and its decelerating sales growth. This article will focus on the sales growth, which slowed materially in 4Q. While the deceleration was significant, it's not as concerning as it might initially appear for several reasons detailed in this article.
Read MoreAmazon: The World's Largest Startup, and Why They Shouldn't Have Profits
Amazon's lack of profits is a conscious decision by management, and the right decision given the opportunity ahead of them. The key questions investors should focus on is not whether they are in financial trouble, but what the company will look like in 5-10 years.
Read More