Reasons that I buy amazon stock

Increases in AWS Sales and Advertising Revenue


In purchasing Amazon stock, we considered whether Amazon could really be considered a consumer monopoly company that could permanently provide the services customers needed.

Conclusion: Amazon can be thought of as a consumer monopoly company, capable of permanently providing the services customers need.

I will briefly summarize the points.

  • AWS sales of $ 25.7 billion in 2018 (up 47% from 2017). Over 2000 government agencies have adopted AWS.
  • Advertising revenue in 2018 has already grown explosively to $ 4.6 billion. 3rd place after Google and Facebook.
  • Many companies such as Unilever, a major consumer goods company, Verizon, a major telecommunications company, and Gaiko, a major automobile insurance company, are advertising on Amazon. Pivotal Research expects Amazon’s advertising revenue to reach $ 38 billion by 2023.

About AWS adoption status in companies


We checked the adoption status of Amazon web services, which currently account for most of Amazon’s operating profit, on the Amazon site.

Some of the hiring companies are listed below, but I was surprised that dow jones use it. Government agencies such as the University of Chicago and the University of San Francisco are also use the amazon cloud.

Flemish Works and Traffic Agency Uses AWS to Maintain Belgium Roads

As you can see, many companies have already adopted AWS, and we can expect stable income in the future.

Currently, the PER is close to 80, and if bad news comes out, there is a risk that the stock price will fall.

However, if profits quadruple in a few years, the current stock price may be at a reasonable level (PER 20).

I would like to investigate again in the future whether the profit will be quadrupled.

Please consider it as well.

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