Among the US tech giants, only Amazon may be the recognized leader in both major industries. As the dual dominant player in the e-commerce and cloud computing industries, Amazon's financial performance has also been a big draw.
After the U.S. stock market close on May 2, Amazon will release the latest report. What should Amazon's financial report look like? What are the main points of concern?We look at three main points: retail business base, cloud business and free cash flow.
1. Basic portfolio: retail business
Everyone's first impression of Amazon may be that of an e-commerce giant. On the basis of e-commerce, Amazon also derives its business from offline retail, third-party seller services, member subscriptions, e-commerce advertising, etc., all of which can be classified as Amazon's retail business, or Amazon's basic Tray.
For the retail business, look primarily at its revenue growth rate and profit rate. In terms of revenue, Amazon's retail revenues have fluctuated considerably in the last two or three years due to the effects of the pandemic and macroeconomic volatility.
In the first half of 2020 - 2021, the pandemic stimulated demand for online shopping, coupled with the Fed's easing policy boosted macroeconomic growth, with Amazon's retail segment growing at the highest quarterly rate, or even more than 40%.
However, starting in the second half of 2021, as the effects of the pandemic began to subside, economic growth expectations due to the US Federal Reserve rate hike fell, and previous revenue levels were high, Amazon's retail revenue growth began to show a cliff-edge...