With a market capitalisation of over one trillion dollars, Amazon is among the top 5 largest companies in the world. Who would’ve known that an online bookstore operating out of Jeff Bezo’s garage in 1994 would transform into a global leader in e-commerce and cloud computing today.
Since its initial public offering in May 1997, Amazon’s share price went from $18 to a recent high of US$3,773, representing an over 20,861% gain on investment. This means that every US$10,000 invested would have grown to US$2,086,100. Clearly, this impressive performance and growth are attributed to its business model. But, as an investor, how well do you understand Amazon’s business?
Did you know that Amazon has six different revenue segments reported in its annual reports? If the answer is no, and you’ve always been confused about Amazon’s diversified business, this article will help to provide a bird’s eye view of its overall business model....