NASDAQ: AMZN|ISIN: US0231351067|SECTOR: Consumer Discretionary
Amazon.com, Inc. is the world’s largest online retailer and a dominant force in global cloud computing through its Amazon Web Services (AWS) division. With a long-standing focus on innovation, customer satisfaction, and technological infrastructure, Amazon has transformed from an online bookstore into a diversified technology and services conglomerate. This report outlines Amazon’s operations, key revenue streams, cost structure, cloud services strategy, and financial focus, with emphasis on long-term value creation and scalable growth.
Amazon’s e-commerce platform is the core of its global business, offering products for direct resale, third-party marketplace listings, proprietary electronics and media content (such as Kindle, Fire tablets/TV, and Alexa), as well as subscription services like Amazon Prime and digital content. The company operates a vast global network of fulfillment centers, customer service centers, data centers, and software development hubs. Its online stores are localized for various regions while leveraging a unified technology and logistics infrastructure.
Launched in 2006, AWS provides on-demand cloud computing platforms and APIs, including Amazon S3 for secure, scalable storage, Amazon EC2 for flexible computing power, and over 200 services covering databases, analytics, AI/ML, IoT, and networking. AWS plays a key role in enabling digital transformation by making advanced computing capabilities accessible to organizations and governments.
Amazon offers a diverse range of products and services, including retail and marketplace offerings across categories like groceries, electronics, and fashion; devices such as Kindle, Fire tablets/TVs, and Echo (Alexa-enabled); digital services including Twitch, Amazon Prime, and original content; enterprise services via AWS (compute, storage, analytics, AI, IoT, and databases); fulfillment and logistics solutions for both Amazon and third-party sellers; and a growing digital advertising business powered by first-party retail and behavioral data.
FINANCIAL INFORMATION
| INR MILLIONS | FY23 | FY24 |
| Total Assets | 527,854 | 624,894 |
| EBIT | 36,852 | 68,593 |
| Profit after tax | 30,425 | 59,248 |
| Total Revenue | 574,785 | 637,959 |
Source: Company financial Report
Revenue Growth: Total revenue increased by 11.0%, indicating a healthy expansion in business operations year-over-year.
Profitability Surge: Profit after tax nearly doubled, rising 94.8%, reflecting improved operational efficiency and cost management.
Operating Performance: EBIT showed significant growth of 86.2%, demonstrating strong gains in core operating income.
Asset Expansion: Total assets grew by 18.4%, suggesting ongoing investments in infrastructure, technology, or capacity expansion.
| Price to Book Value | 8.23 |
| Dividend Yield (%) | – |
| Return on Equity | 24.3 |
| Return on capital (%) | 17.0 |
| Earning Per Share | $5.53 |
Source: Company financial Report
SHAREHOLDING PATTERN
Source: Company financial Report
| Majority shareholders | Other DIIs |
| Pledged Promoters Holdings | None |
| Mutual Fund | Held in 12 Schemes (0.14%) |
| FIIs | None |
| Promoters with Highest Holdings | None |
| Highest Public /Private Shareholder | The Vanguard Group and BlackRock |
| Individual Investors holdings | 25.50% |
Source: Company financial Report
SHAREHOLDING COMPARE (% Holding)
| Majority shareholders | 0% | 0% | 0% |
| FIIs | 0% | 0% | 0% |
| Mutual Fund | 0.50% | 0.40% | 0.10% |
| Insurance Companies | 7.6% | 4.6% | 3% |
| Non institutional Investors | 34% | 3.70% | 30.30% |
| Others | 0% | 0% | 0% |
| Other DIIs | 61.26% | 59.58% | 1.68% |
Source: Company financial Report
Source: Company financial Report
AMZN’s retail segment achieved operating profit in 2Q23 and continue to booked a record high margins in 4Q23 after seven quarters of losses due to challenges stemming from macroeconomic factors.
According to eMarketer, US e-commerce industry is expected to grow at a CAGR of 12.3% over FY24F-27F, representing 21.2% of total retail sales in 2027 (15.0% in 2022). AMZN is still the leading ecommerce player accounting for 41% of the US ecommerce and there is a significant portion of untapped market to capture.
The Retail segment operating margin improved to 6.1% vs a negative 0.3% in 4Q22, driven by lower delivery costs stemming from regionalizing AMZN’s delivery network.
Consensus expects revenue CAGR of 11% for the retail segment of AMZN over FY24F-26F, driven by growth in its online stores and third-party seller service.
While retail operating margins are projected to improve from 1% in 2023 to 3% in 2025. The focus will shift towards profitability as the retail segment completes its fulfilment build cycle. AMZN’s flexibility in pushing 1P vs 3P inventory and its Prime offering both serve as major advantages in its retail business. Amazon Logistics is likely to deliver well over 50%+ of packages from AMZN Fulfillment Centers, all of which should reduce dependence on 3P shippers. We expect AMZN’s retail segment operating income to be a key driver of share price from 2023 onwards, dethroning AWS’s operating income.
PRICE ACTION
| Parameters | Range |
| Volume Traded | 356,007 |
| Current Price | $217.37 |
| Earnings Per Share(EPS) | $5.53 |
| Previous Value | $216.98 |
| Open Price | 214.75 |
| Today low/high | 212.88/217.85 |
| 52 week low/high | $242.52/$151.61 |
Source: New York Stock Exchange
Source: New York Stock Exchange
Amazon stock is currently exhibiting a strong bullish recovery, evident from the series of higher lows and higher highs visible in the chart. After previously dipping near the $160–$170 zone, the price has rebounded sharply and recently broken through the $200.12 resistance level, which has now turned into a support zone. The stock is now testing a significant resistance area around $217–$218. This level has acted as resistance in the past, and the current price action shows some hesitation just below it, suggesting that the market is watching this zone closely.
From a technical indicator perspective, the MACD (Moving Average Convergence Divergence) likely confirms the bullish momentum. Given the sharp upward price movement, the MACD line is probably positioned above the signal line, and the histogram is expanding, indicating increasing bullish strength. This crossover may have occurred around the $180–$190 range, signaling the beginning of the current rally.
The RSI (Relative Strength Index) is also expected to be in the higher range, possibly between 60 and 70, which suggests strong momentum but also raises the possibility of overbought conditions. If RSI moves above 70, it could indicate a short-term overbought status, leading to a potential pause or pullback. However, in strong uptrends, RSI can remain elevated for extended periods without triggering reversals.
Similarly, the Money Flow Index (MFI), which incorporates both price and volume, is likely showing signs of increasing inflows, reflecting strong buying pressure. If the MFI is above 80, it could indicate overbought conditions, but this would also confirm that institutions and large investors are driving the move.
In conclusion, the overall trend for Amazon stock remains bullish as long as it holds above the $200.12 support level. A breakout above $217–$218 would likely open the door for further gains toward the next resistance levels at $233.76 and $241.91. However, traders should watch for any short-term pullbacks if RSI or MFI signals become overextended without continued volume support.
