AMZN- Buy or Sell ?

[ashleyjames389]

AMZN reported 20.4% YoY growth but it was lower than last 3 quarters

 

[ashleyjames389]

AMZN revenues generated from North America increased but company’s revenues from its International division declined

 

[ashleyjames389]

International segment’s performance decline was due to low growth in the company’s revenues from its Media division

 

[ashleyjames389]

AMZN reported operating margin of 5.5% in North America, and 7.4% in its International businesses in 2009 however, by 4QFY13, margins had narrowed to 4.7% and 1.5%, respectively.

 

[ashleyjames389]

Positives for AMZN

Drone delivery has been announced which will start delivery by 2015

 

[ashleyjames389]

by 2019, Amazon Fresh's total addressable market in the US will be worth $138 billion, and that within that market

 

[ashleyjames389]

Amazon is a leader in public cloud technologies with its Amazon Web Services product. According to a Morgan Stanley report, AWS’s total addressable market is expected to be worth $152 billion by 2022, of which Amazon can capture $24 billion.

 

[ashleyjames389]

Margins may be declining but heavy investment in warehousing, logistics, delivery drones, and other growth projects will pay off heavily in the long run.

 

[ashleyjames389]

GO LONG ON AMZN (My personal recommendation only)