01/05/2025
With a market capitalization of $1.8 trillion, Amazon outperforms all its competitors combined by a significant margin, reflecting its dominance not only in e-commerce but also in cloud services (AWS), which represents 70% of its operating profit. Following the recent 20:1 stock split and a 15% growth year-to-date, Amazon continues to expand in generative AI with $4 billion in investments in Anthropic and the implementation of Amazon Bedrock.
Meanwhile, competition remains fragmented: Walmart advances in omnichannel but with lower margins, and Alibaba faces regulatory pressures in China. All this in a context of trade war from which Amazon should emerge better positioned than its rivals, thanks precisely to the diversification we highlighted earlier.
This difference in expectations is clearly noticeable in its P/E ratios, above its competitors.
Do you have Amazon in your portfolio? Today's earnings release will be key to validating this dominance. Will you maintain your positions, increase exposure, or prefer to diversify among its competitors?
Share your strategy in the comments!
*This publication is a marketing communication, not an offer or sollicitation to invest in any financial instruments.
