| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 103.30 | -49 |
| Intrinsic value (DCF) | 145.63 | -28 |
| Graham-Dodd Method | 46.20 | -77 |
| Graham Formula | 91.40 | -55 |
Amazon.com, Inc. (AMZ.DE) is a global leader in e-commerce, cloud computing, digital streaming, and artificial intelligence. Headquartered in Seattle, Washington, Amazon operates through three core segments: North America, International, and Amazon Web Services (AWS). The company dominates the specialty retail sector, offering a vast selection of consumer products, subscription services, and proprietary electronic devices like Kindle, Fire tablets, and Echo smart speakers. AWS, its cloud computing division, is a key growth driver, providing scalable infrastructure, AI, and machine learning solutions to enterprises. Amazon Prime, its flagship membership program, enhances customer loyalty with benefits like free shipping, streaming content, and exclusive deals. With a market cap exceeding €1.88 trillion, Amazon continues to innovate in logistics, advertising, and digital content, reinforcing its position as a tech and retail powerhouse. Its diversified revenue streams and global reach make it a critical player in the consumer cyclical sector.
Amazon remains a compelling investment due to its dominant market position, diversified revenue streams, and strong growth in AWS and advertising. The company’s robust operating cash flow (€115.9B) supports continued innovation and expansion, though high capital expenditures (€-83B) indicate aggressive reinvestment. While its beta (1.31) suggests moderate volatility, Amazon’s lack of dividends may deter income-focused investors. Risks include regulatory scrutiny, intense competition in cloud services (AWS), and macroeconomic pressures affecting consumer spending. However, its leadership in e-commerce, AI-driven logistics, and high-margin segments like AWS provide long-term upside potential.
Amazon’s competitive advantage stems from its unparalleled scale, logistics network, and technological innovation. In e-commerce, its Prime membership (200M+ subscribers) and fulfillment infrastructure create high switching costs for customers. AWS leads the cloud market (31% share) with superior scalability and AI/ML capabilities, though Microsoft Azure and Google Cloud are closing the gap. Amazon’s vertically integrated ecosystem—spanning devices (Alexa, Ring), media (Prime Video, Twitch), and advertising—enhances cross-selling opportunities. However, competition is intensifying: Walmart excels in omnichannel retail, Alibaba dominates Asian e-commerce, and Microsoft/Google challenge AWS in cloud services. Regulatory risks (antitrust, labor practices) and margin pressures in low-margin retail segments remain concerns. Amazon’s ability to leverage data, automation, and AI for efficiency (e.g., robotics in warehouses) sustains its cost leadership, but rivals are replicating its strategies, necessitating continuous innovation.