Amazon E-Commerce Is A 'Loss-Leader' … Its Real Money Is In 'Services,' Says Analyst

Quick Summary:

Amazon.com Inc.(NASDAQ:AMZN) may be regarded by consumers primarily as an e-commerce company, given its blue delivery trucks are constantly dropping off packages at people’s doorsteps, but an analyst begs to differ.“Our view is that eCommerce does NOT drive AMZN’s share price,” Needham analyst Laura Martin wrote in a note Thursday.“We believe AMZN is a Services company (ie, Advertising, Cloud, Prime Video, etc), NOT a products company, and eCommerce is all about products.

Every quarter, we calculate a sum-of-the-parts valuation, and in most quarters we conclude that investors are paying almost nothing for AMZN’s eCommerce.”

She noted Amazon’s net revenue for this year’s second quarter grew 15% year-over-year to $86.4 billion, accounting for 58% of the company’s revenue of $148 billion in a three-month period and growing four timers faster than product sales revenue.

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Article Details

Author / Journalist: Michael Juliano

Category: Technology

Markets: United States

Topics: Laura Martin Benzinga Ecommerce Tech US81369Y4070 US0231351067 VCR AMZN Needham ONLN Stories That Matter E-commerce CLIX Analyst Color Retail Sales XLY Services ETFs US92204A1088 FDIS

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-12 @ 16:47:23 (10 hours ago)

News Timezone: GMT +8:00

News Source URL: benzinga.com

Language: English

Article Length: 449 words

Reading Time: 3 minutes read

Sentences: 11 lines

Sentence Length: 41 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Benzinga

News ID: 22474266

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