Amazon - 2 Stocks You Can Keep Earning Even With a Downgrade - Part 2

  Amazon - 2 Stocks You Can Keep Earning  Even With a Downgrade - Part 2   In the second part of our series titled 2 Stocks You Can Keep Earning Even If There Is A Decline

We will examine the American multinational technology company Amazon.

 

2- Amazon (NASDAQ:AMZN)

The companies that have attracted the most attention and have grown rapidly in recent years have been the ones benefiting from the pandemic. Specifically, we see that the shift to online consumption and data storage is among the sectors that are gaining value and attracting attention. The Company, which increased its sales by 38 % last year, generating an additional $ 105.6 billion in revenue, reached a sales of $ 386.1 billion. Wall Street, on the other hand, is not used to such fast-growing and powerful companies. According to Emarketer, Amazon, which holds the leadership of online retail, will increase its market share in the US by 100 basis points in 2021. This means that 0.46 of every $ 1 spent online in the US is driven by Amazon.

We will examine the American multinational technology company Amazon.

The Company has added more than 150 million new members to its Prime subscription as a result of its market dominance. Thanks to Amazon's fees from Prime and e-commerce, many store owners retailers forced to lower their prices. Amazon has also reached a leading position in cloud infrastructure services. Sales of Amazon Web Services (AWS), the company's cloud infrastructure service, increased by 30 % in 2020. During the pandemic, the biggest economic crisis of the last period, thanks to its cloud infrastructure and high margins, AWS helped Amazon achieve $ 13.5 billion of its $ 22.9 billion in operating revenue. Thus, it is a fact that thanks to AWS, the cash flow of the enterprise has increased. It can be said that the end of the year is the most suitable period to own Amazon stocks, which are estimated to increase between 23 and 37 times the cash flow.    

Source: The Motley Fool

 

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