Couriers, servers, and taxes: How Amazon’s business works

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Amazon is an online commerce platform, a provider of cloud and other services. But the company makes money from a bunch of other things, from audiobooks and TV shows to alarm systems and clothing. In fact, this company is a huge machine that has come straight to us from a cyberpunk dystopia. AMZN live stock prices are in demand among traders. Note that the AMD live chart should be considered as an alternative. 

AMZN live stock price — on what the company earns and what affects the share price

Amazon has a very creative way of calculating its earnings. According to the annual report, the company has 3 segments: sales in North America, international sales, and Amazon Web Services. Therefore, the company’s stock price is growing more dynamically than the AMD live chart. 

North American sales. Is online commerce: selling goods on the company’s online platform and in its physical stores — yes. Amazon has physical stores, such as the Whole Foods Market chain of organic food stores. This category includes both Amazon-branded merchandise and merchandise from other sellers who use the platform to sell their products. It also includes online book sales and company-branded merchandise.

Another segment includes paid subscriptions. Mainly Amazon Prime, which gives subscribers many exclusive options and discounts. The main trick there is express delivery in a day or two from the time of purchase. But, in general, Prime includes a lot more: the streaming service Prime Video, the music streaming service Prime Music, the food delivery service Prime Pantry, and the gaming service Prime Gaming. Many of these services are available separately for a lower price.

There’s also the Amazon Key smart home service — advanced types of alarms and locks. There’s the audiobook service Audible. There’s just about everything there is! In general, Amazon is actively expanding and is constantly releasing new services. Stay tuned to letizo.com for the latest news about the company. 

Amazon share price and chart — why it’s worth the investment

Amazon is doing something on the fly, leveraging what it’s learned in other industries. All actions have an impact on Amazon’s share price and chart. For example, the company’s advertising business is actively growing because over the years it has built up a huge user base and an unreal amount of data about buying habits.

In other words, Amazon is everything. It’s selling their own and other people’s products on websites, it’s food stores, it’s books and audiobooks, it’s movies and TV shows, it’s home devices, it’s doorbells, it’s talking speakers that help control the house, it’s a lot more. It is very likely that Amazon will enter the auto business, or more precisely, the sphere of auto parts sales: auto parts are typical, and car owners can buy them on the Amazon site.

In other words, this is no longer a separate business, but rather an integration into the existing structures of everyday life. Amazon has done in physical space what Google has done in virtual space. Google became the main navigation method on the Internet and Amazon gathers consumers around itself, giving them very different services: it helps them make purchases, watch movies, install electronics in their homes.

Summary

Amazon is the epitome of a classic dystopia: low-wage jobs, penetration into many areas of customers’ lives, from shopping to home security, information gathering, and monopoly. On the one hand, this allows the company to show a steep growth rate-though it’s long gone from being a startup. On the other hand, all these features irritate regulators and can lead to problems for the company.

But if we take global issues aside, it’s the lack of detailed information about the company’s business that makes some investors uncomfortable when parsing the company’s business. How much are movie sales and how much do Prime Video rentals generate? What percentage of sales come from Prime subscription users? And, most importantly, what is the profitability of each segment — what is the true bottom line of each segment?

It’s not hard for Amazon to gather this information: energy companies collect the most detailed statistics on their operations, right down to the metrics of an individual field — see, for example, the Total report. Amazon can hardly do the same. Such information would give us a fuller picture of the business and, indeed, of its prospects.

So far, we see only a very simplified picture: a cloud business that funds all of the company’s other projects — and a low-margin retail business attached to it, which will eventually evolve into a hypermarket with Amazon-branded merchandise.Of course, this is a very simplified picture: Amazon is already more a part of life for Americans than just commerce.

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