Of all the e-commerce giants in the world, Amazon Inc. stands head and shoulders above the rest. Having recently crossed the coveted trillion dollar mark in market capitalization, it is set to revolutionize the e-commerce industry. With innovations like same day delivery and their unparalleled dedication towards customer service, Amazon is a company for the future.
Their main advantage is the fact that the company is unlike any other e-commerce set up, they deal in what is called scalability. The company owns more than 70 companies and the fundamental theory behind their business is to do things which no small business in the world can, by simply multiplying the volume of commodities they deal in, to the Nth degree.
The most recent quarterly report showed a 2.5 billion dollar profit, compared to the 197 million dollar profit they posted in the same quarter last year. Another important data metric was the increase in EPS or earnings per share, which went up from 0.40 dollars to 5.07 dollars. This staggering change is a sign that the company is primed for more growth over the next few years.
Apart from scalability, another factor which sets Amazon apart is the fact that they focus on customer service and retention. Their main aim is to provide the best possible service for their customers. This is evident in their superb return policies and their lightning fast deliveries. Another important point is the fact that they sell any and everything, their inventories are massive and it shows that they are simply into the business of dealing in volume and are not your average supplier.
Here are some other factors to look at if you still are pondering on an investment in Amazon
- Online retail is the future: As we step into the next decade of the 21st century, we will notice an increase in the usage of the internet and thus an increase in online retail.
- Expansive nature: Amazon is a company which likes to invest in anything and everything, their main goal is to dominate any and every industry with their power of scaling.
- Leader: Jeff Bezos is a dynamic leader at the helm of the company and is one whose ideology is what started this company and will continue to grow it.
- EPS: Amazon had a very high Earnings Per Share increase from the last quarter and this is due to its ability to come into new sectors and seemingly dominate it in a short span of time.
- High cash flow: For a stock valuation to be very high, it has a great cash flow value of nearly over 79%.
All of these reasons make Amazon the dream for any investor, as they continue to expand and grow. They are focused on providing the best service in any industry and sector they enter and that itself is reason enough to buy their stocks while you can. So when you hear rumblings of a new merger between a company and Amazon, you should divert all your investment to buy their stocks during that time.