Amazon dominates the North American online retail landscape with 2014 product sales of almost $50 billion (excluding services), roughly equal the next eight closest nonauction competitors combined.
With more than half of the world's Internet users coming from developing markets, Amazon has sizable global growth opportunities.
Kindle products and complementary devices like Fire TV and Amazon Dash represent intriguing customer acquisition and retention tools that capitalize on the shift to digital media while also promoting Prime memberships and cloud computing capabilities. Read more
Amazon's margin expansion will likely be relatively slow and at times uneven given its current investment cycle.
We believe the market will be hesitant to reward the stock a premium without seeing stronger returns on recent capital investments. With an equity component common in many employees' compensation structures, we believe the company runs the risk of losing key personnel without stronger ROIC metrics.
International growth brings unique challenges, including changing e-commerce laws, infrastructure investments, and incumbent competition in some overseas markets. Read more
Chairman and CEO Jeff Bezos founded Amazon.com in 1994. We think Amazon's management team is Exemplary in terms of corporate stewardship. Not even the most senior managers have golden parachutes. Bezos owns about 20% of the shares, takes no equity compensation Read more
Amazon is among the world's highest-grossing online retailers, with $89 billion in net sales in 2014. Media products represented 25% of sales in 2014, and electronics and Read more
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