amazon 2 billion dollar revenue cloud business

Accuracy score :
97%

Amazon.com Inc  AMZN

Summary (from latest annual report 2015 and quarterly report 2016)

  • Total equity  : 16.53 billion USD
  • Market Cap is 364.6 billion USD ( last price of the stock is 769.04 USD)
  • Amazon.com Inc is an online retailer. The Company sells its products through the website which provides services, such as advertising services and co-branded credit card agreements
  • Equity of total company increased from 10.74 billion USD in 2014 to 16.53 billion in 2016
  • Company has 15.89 billion USD in cash on account (from latest quarterly report)
  •  Total equity – cash on account = 16.53 billion USD – 15.89 billion USD = 640 million USD
  • Company has 1.83 billion USD treasury stock
  • In 2016 company had 8.21 billion USD long-term debt, short – term debt was zero                                                                                                                                                            (In 2014 total debt was 8.26 billion USD)
  • In 2016 quarterly report - total equity increased to 16.53 billion  USD from 10.74 billion USD in 2014, total debt is 8.21 billion USD in 2016)
  • Company's revenue increased in 2015 to 107 billion USD from 88.98 billion in 2014
  • Net income in 2015 was 596 million USD, Net loss in 2014 was 241 million USD

Amazon.com Inc  AMZN

 

Amazon.com, Inc., often referred to as simply Amazon, is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon has separate retail websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India and Mexico. Amazon also offers international shipping to certain other countries for some of its products. Amazon issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at a price of US$18.00 per share ($1.50 after three stock splits in the late 1990s). Amazon has approximately 230,800 full-time and part-time employees.

Company sales increased 20%, 20%, and 22% in 2015, 2014, and 2013, compared to the comparable prior year periods. Media (represents 21% of total revenue), Electronics and other general merchandise (represents 70% of total revenue) , AWS (represents 8% of total revenue), other activities (represents 1% of total revenue).

 

  • United States division is worth 236 billion USD (represents 65% of total revenue)
  • Germany division is worth 40 billion USD (represents 11% of total revenue)
  • United Kingdom division is worth 37 billion USD (represents 10% of total revenue)
  • Japan division is worth  27 billion USD (represents 7.4% of total revenue)
  • Other divisions are worth 24 billion USD (represents 6.6% of total revenue)

Amazon announces additional US $2 billion investment in India in June 2014 and US $3 billion investment in 2016

 

Products and services

  • Amazon product lines include several media (books, DVDs, music CDs, videotapes, and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific supplies, kitchen items, jewelry and watches, lawn and garden items, musical instruments, sporting goods, tools, automotive items and toys & games
  • In 2005, Amazon announced the creation of Amazon Prime, a membership offering free two-day shipping within the contiguous United States on all eligible purchases for a flat annual fee of $79 (equivalent to $96 in 2015)
  • In August 2007, Amazon announced AmazonFresh, a grocery service offering perishable and nonperishable foods
  • In November 2007, Amazon launched the Kindle, an e-reader which downloads content over "Whispernet", via Sprint's EV-DO wireless network
  • In 2012, Amazon announced the launch of Vine.com for buying green products, including groceries, household items, and apparel. It is part of Quidsi, the company that Amazon bought in 2010 that also runs the sites Diapers.com (baby), Wag.com (pets), and YoYo.com (toys). Amazon also owns other e-commerce sites like Shopbop.com, Woot.com, and Zappos.com
  • In April 2014, Amazon announced its Amazon Fire TV set-top box system, a device targeted to compete with such systems like Apple TV or Google's Chromecast device
  • Amazon's Subscribe & Save program offers a discounted price on an item (usually sold in bulk), free shipping on every Subscribe & Save shipment, and automatic shipment of the item every one, two, three, or six months
  • Fulfillment by Amazon Small and Light is a service introduced in 2015 that will provide fulfillment for small, light items from a center in Florence, Kentucky
  • In March 2016, Amazon launched Amazon Echo dot, a smaller, more affordable version of the Echo
  • Company also has :  Amazon Payments, Amazon Music (its own online music store), Amazon Appstore for Android devices, Amazon Games, Amazon Art (an online marketplace selling original and limited edition fine art from selected galleries), Amazon Video, Private labels and exclusive marketing arrangements, Amazon Web Services (AWS) (which provides programmatic access to latent features on its website), Amazon Publishing, Amazon Smile, Amazon Local (offers daily deals to over 100 regions in 36 U.S. states), AmazonWireless, AmazonFresh, Amazon Prime Pantry, Amazon Dash, Amazon Prime Air, Prime Now and others

 

 

 AMZN standalone subsidiaries and acquisitions :

  • In 2015 and 2016, Amazon acquired certain companies for 1 billion USD ( Elemental Technologies for 500 million USD, Annapurna Labs for 350 million USD, other acquisitions include: Cloud9 IDE, EMVANTAGE Payments, NICE, Orbeus, Safaba Translation Solutions, Clusterk, Amiato, Shoefitr, 2lemetry). The primary reasons for these acquisitions, none of which was individually material to their consolidated financial statements, were to acquire technologies and know-how to enable Amazon to serve customers more effectively
  • On September 25, 2014, Amazon acquired Twitch Interactive, Inc. (“Twitch”) for approximately 842 million USD in cash, as adjusted for the assumption of options and other items. During 2014, Amazon acquired certain other companies for an aggregate purchase price of 20 million USD (Rooftop Media, Comixology, Double Helix Games)
  • In 2013, Amazon acquired several companies in cash transactions for an aggregate purchase price of 195 million USD ( GoPago, TenMarks Education, Screentech, Liquavista, Evi, Goodreads, IVONA Text-To-Speech). The company’s biggest purchase was Goodreads, the book recommendation service Amazon acquired for around 150 million USD
  • In 2012, Amazon paid 678 million USD for warehouse robotics company Kiva Systems
  • Amazon spent 771 million USD on acquisitions in 2011, 540 million USD of which was used to buy Diapers.com parent company Quidsi ( smaller acquisitions include:Quorus, Yap, Pushbutton, The Book Depository, BuyVIP, Amie Street, Woot, Touchco)
  • In 2009 Amazon acquired Zappos in deal worth 1.2 billion USD
  • In 2008 Amazon acquired Audible for 300 million USD
  • In period 1998-2007 Amazon acquired : IMDB, Telebook, Junglee, PlanetAll.com, Bookpages, LiveBid, Shopbop,TextPayMe, CustomFlix, Mobipocket.com, BookSurge, Joyo.com, CDNOW, OurHouse, Back to Basics, Accept.Com, Alexa (250 million USD), Exchange.Com for 600 million USD

 

Total = 5.58 billion usd

 

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 8.21 billion USD, company has 15.89 billion USD in cash on account, ROE is around 13 %).