Key Takeaways

• Retail Resilience: Retail remains a core driver of revenue, with strong performance in North America.

• AWS and AI Leadership: AWS continues to demonstrate robust growth and healthy margins, supported by advancements in AI infrastructure and proprietary technologies like Trainium.

• Valuation Upside: Base case valuation of $245, with potential upside to $310 driven by AWS growth and broader AI adoption.

Amazon’s 2024 performance reflects its resilience and adaptability across its core businesses: Retail, Cloud Services (AWS), Advertising, and Subscriptions. By leveraging innovation, operational efficiencies, and strategic investments, Amazon has sustained its leadership in e-commerce, while rapidly expanding its presence in high-margin segments like cloud computing and advertising. Source: Amazon, Tradingkey.com Retail: The Cash Cow Driving Stability Amazon’s Retail segment remains the backbone of its business, contributing 66% of total revenue through Online Stores, Physical Stores, and Third-Party Seller Services. In 2024, the retail business demonstrated robust performance across North America and International markets, supported by operational efficiencies and strong consumer demand....