Company Overview: Amazon
Amazon (NASDAQ: AMZN) is a leading American e-commerce and cloud computing company. Founded by Jeff Bezos in 1994, it began as an online bookstore and has since expanded into various industries such as retail, cloud, content, and artificial intelligence, becoming a global Big Tech company.
Its core business, AWS (Amazon Web Services), holds the largest share of the global cloud market, leading the cloud infrastructure sector alongside Microsoft Azure and Google Cloud. The company is also at the forefront of emerging technologies such as logistics automation, robotics, smart home systems, and AI.
Headquartered in Seattle, Washington, USA, it operates globally with an extensive logistics network and data center infrastructure. Through services and devices like Prime membership, Alexa, Amazon Go, and Kindle, it is actively expanding its customer ecosystem.
The company is considered a strong candidate for long-term investment due to its high growth potential and market dominance in e-commerce and cloud industries.
Financial Summary (2022–2024E)
Amazon continues to show stable growth in both its e-commerce and cloud computing (AWS) businesses. The table below summarizes its key financial indicators for the past three fiscal years.
| Metric | 2022 (Dec 31, 2022) | 2023 (Dec 31, 2023) | 2024E (Dec 31, 2024) |
|---|---|---|---|
| Revenue (Million USD) | 513,983 | 574,785 | 637,959 |
| PER | – | 81.83 | 35.50 |
| PBR | 11.16 | 8.32 | 7.27 |
| EBITDA (Million USD) | 37,752 | 67,819 | 101,531 |
| EBIT (Million USD) | 12,248 | 36,913 | 68,593 |
| Pre-Tax Income (Million USD) | -5,936 | 37,557 | 68,614 |
| Net Income (Million USD) | -2,722 | 30,425 | 59,248 |
| Dividend Yield (%) | – | – | – |
| ROA (%) | -0.62 | 6.15 | 10.30 |
※ Source: Naver Finance – Amazon
(E) indicates estimated values for the fiscal year.
Recent Performance Summary of Amazon
- Stable Revenue Growth: Amazon’s annual revenue steadily increased from $513.9 billion in 2022 to an estimated $637.9 billion in 2024, reflecting solid growth in both e-commerce and AWS segments.
- Profit Recovery and Improved Profitability: After recording a pre-tax loss and net loss in 2022, Amazon has rapidly recovered, with pre-tax income expected to reach $6.86 billion and net income $5.92 billion in 2024.
- EBITDA and EBIT Surge: EBITDA is expected to grow by approximately 2.5x over two years to reach $101.5 billion in 2024, while EBIT is also projected to increase to $6.86 billion.
- ROA Turnaround: Return on Assets (ROA) rebounded from -0.62% in 2022 to 10.3% in 2024, indicating rapid improvement in asset efficiency.
- Valuation Multiples Stabilizing: PER recovered from a loss to 35.5 in 2024, and PBR decreased from 11.16 to 7.27, reducing valuation pressure.
- No Dividend Yet: While Amazon does not currently pay dividends, its stable profitability and cash flow may allow for shareholder returns in the future.
Comparison with Global Competitors
Amazon competes in diverse sectors such as e-commerce, cloud, advertising, and AI with other global Big Tech firms like Apple, Google (Alphabet), Meta (Facebook), and Microsoft. The table below compares key metrics among these companies.
| Category | Amazon | Apple | Alphabet | Meta | Microsoft |
|---|---|---|---|---|---|
| Main Business | E-commerce, AWS, Advertising, AI | Hardware, Services, Ecosystem | Search, Advertising, Cloud, AI | Social Media, Advertising, Metaverse | Cloud, Software, AI |
| Recent Revenue (Million USD) | 637,959 | 383,285 | 324,000 | 134,902 | 236,577 |
| Operating Margin (%) | Approx. 10.7 | Approx. 30.5 | Approx. 26.0 | Approx. 37.5 | Approx. 43.0 |
| PER (TTM) | 35.50 | 28.7 | 25.4 | 32.2 | 34.6 |
| ROE (%) | Approx. 15.0 | 144.0 | 29.0 | 32.3 | 40.6 |
| Strategy | Expand global e-commerce, strengthen AWS, integrate AI | Device ecosystem integration, grow service revenue | Ad growth via search, expand Cloud & AI | Focus on ad-based SNS, develop metaverse | Azure-led cloud, expand Copilot AI |
※ Source: Company IR reports, Naver Finance, Yahoo Finance (as of March 2025)
Key Strengths
- Global E-commerce Leadership: Amazon is the largest e-commerce platform in the world with a dominant market share in North America, Europe, and Asia.
- Strong Position of AWS: Amazon Web Services (AWS) holds the largest market share in the cloud computing industry and remains Amazon’s most profitable business.
- Growth in Ads and Subscriptions: Subscription services such as Prime membership, Prime Video, and Amazon Music are rapidly growing alongside advertising revenue.
- AI and Logistics Integration: Amazon maximizes operational efficiency and customer satisfaction through advanced technologies like AI-powered recommendation systems, robotic logistics, and autonomous delivery.
- Global Infrastructure and Network: With hundreds of logistics centers, data centers, and content delivery networks (CDNs) worldwide, Amazon offers fast and reliable services globally.
- Commitment to Sustainability and ESG: Through The Climate Pledge, Amazon has pledged carbon neutrality by 2040 and is leading investments in green logistics and renewable energy.
Investment Attractiveness
Amazon boasts a diversified portfolio across e-commerce, cloud, digital content, and advertising. With strong growth potential and solid cash flow, it is regarded as an attractive investment. Below is an analysis by category:
| Category | Score | Explanation |
|---|---|---|
| Value | 75 | Although Amazon’s PER and PBR are relatively high compared to industry averages, high-margin businesses like AWS support its valuation attractiveness. |
| Growth | 90 | High growth expected in AWS, advertising, Prime subscriptions, and AI-powered logistics operations. |
| Profitability | 85 | Stable EBITDA and EBIT backed by AWS-driven profit structure and operational efficiency. |
| Stability | 80 | Strong stability thanks to global logistics, brand power, and subscription-based revenue streams. |
| Dividend | 0 | Amazon is currently a non-dividend-paying stock. |
※ Source: Amazon Official IR, Naver Finance (https://m.stock.naver.com/worldstock/stock/AMZN.O/finance/primary/annual)
Concerns About Amazon
Amazon possesses a diverse business portfolio and a strong growth foundation, but several concerns remain:
- E-commerce Profitability Pressure: Global economic slowdown and weakened consumer demand have reduced margins in the e-commerce segment. Rising logistics costs also pose a challenge.
- Intensifying Cloud Competition: Although AWS remains an industry leader, increasing competition from Microsoft Azure and Google Cloud puts pressure on maintaining its market share.
- Slowing Advertising Revenue Growth: Economic uncertainty has led to a decline in digital advertising budgets, potentially limiting growth in Amazon’s advertising segment.
- Growing Regulatory Risks: Antitrust investigations and changes in tax policies in the U.S. and Europe pose long-term legal and financial risks.
- Concerns About AI Leadership: In generative AI, Amazon is considered to have entered the field later than competitors like Microsoft and Google, raising questions about its leadership in the space.
Overall Opinion
The company continues stable growth, backed by its massive global customer base, logistics network, and cloud infrastructure. Innovation in cloud services, subscriptions, advertising, and AI-powered logistics provides a solid foundation for future growth.
- Diversified Growth Engines: Beyond e-commerce, revenue is generated from cloud, media, and advertising, offering resilience against external shocks.
- High-Margin Structure via Cloud Division: Cloud services continue to account for the majority of operating profit and are expected to remain a key driver in the long term.
- Persistent Risks: Economic downturns, regulatory pressure, and heightened competition may affect short-term performance, but strong brand power and market position provide solid offsets.
Conclusion: With a robust foundation across the digital economy, the company is considered highly attractive from a long-term investment perspective. While short-term risks exist, diversified growth drivers and tech-driven competitiveness support a strong outlook.
※ This commentary is for informational purposes only and the final investment decision is the responsibility of the investor.
