Amazon.com, Inc. (AMZN)

Company Snapshot

• Founded: 1994 by Jeff Bezos
• Headquarters: Seattle, Washington, USA
• Industry: Technology – E-commerce, Cloud Computing, Digital Media, AI, and Logistics
• CEO: Andy Jassy
• Employees: ~1.5 million (2025)
• Market Cap: ~$2.48 trillion (as of September 2025)
• Ticker Symbol: AMZN
• Exchange: NASDAQ

Business Segments

Amazon operates through three primary segments:

• North America Retail: Online and physical store sales, Prime memberships, subscription services, and advertising revenue in North America.
• International Retail: E-commerce, logistics, and digital services outside North America.
• AWS (Amazon Web Services): Leading cloud infrastructure platform, offering computing, storage, databases, AI/ML, and enterprise cloud services.

Key Subsidiaries & Products: Whole Foods, Twitch, Audible, Kindle, Alexa, Prime Video, Ring, IMDb, Kuiper (satellite internet), and Zoox (autonomous vehicles).

Financial Highlights (Q2 FY2025)

• Net Sales: $167.7 billion (↑13% YoY)
  • North America: $100.1B (↑11%)
  • International: $36.8B (↑16%)
  • AWS: $30.9B (↑17.5%)
• Operating Income: $19.2 billion
  • AWS: $10.2B
  • North America: $7.5B
  • International: $1.5B
• Net Income / EPS: $18.2 billion / $1.68 per share (vs. $13.5B / $1.26 YoY)
• Operating Cash Flow (TTM): $121.1 billion
• Free Cash Flow (TTM): $18.2 billion (vs. $53.0B last year, reflecting heavy CapEx investments)

Global Presence

• Retail Operations: Serves 100+ countries, dominant in U.S., Europe, and expanding in India and Latin America.
• Prime Membership: Over 220 million global subscribers.
• Logistics: Operates a vast global fulfillment network, including last-mile delivery, air cargo, and warehouses.
• AWS: Among the top three global cloud providers with ~30% market share.

Strategic Initiatives

• AI & Automation: Heavy investments in AI, robotics, and machine learning for logistics, customer experience, and AWS.
• Project Kuiper: Satellite constellation project to provide global broadband internet (aimed at competing with Starlink).
• Autonomous Vehicles: Zoox developing self-driving ride-hailing technology.
• Advertising Growth: Expanding Amazon Ads, now a multi-billion-dollar segment.
• Sustainability: Committed to reaching net-zero carbon by 2040; investing in renewable energy and electric delivery vehicles.

Innovation & Culture

• Customer Obsession: Amazon’s guiding principle is “customer obsession over competitor focus.”
• Day 1 Philosophy: Jeff Bezos’ long-standing mantra for maintaining agility and innovation.
• Employee Base: One of the world’s largest employers, with significant investments in workforce training, automation, and warehouse robotics.

Challenges & Considerations

• AWS Growth Lag: AWS grew 17.5% in Q2 FY25, slower than Microsoft Azure (39%) and Google Cloud (32%).
• Regulatory Scrutiny: Facing antitrust cases globally, particularly over dominance in e-commerce and cloud.
• Thin Retail Margins: E-commerce operations remain low-margin compared to AWS profitability.
• Economic Sensitivity: Consumer spending trends and inflation directly impact retail performance.
• CapEx Heavy: Massive infrastructure spending ($115B expected in FY25) impacts near-term free cash flow.

NOTE: This analysis is for informational and educational purposes only. It is not investment advice. Please consult a licensed financial advisor before making investment decisions.