Group 1: Amazon - Amazon is a leading e-commerce retailer with a market cap of 2.3trillionandsignificantgrowthpotentialintheglobale−commercemarket[3][5]−Thecompanyhasover200millionPrimesubscribers,providingrecurringrevenueandencouragingrepeatsales[4]−Amazon′sonlinestoregenerated247 billion in revenue last year, representing a small percentage of the 6trillionglobale−commercemarket,indicatingroomforgrowth[5]−Operatingincomenearlydoubledlastyearduetoimprovedinventoryefficiencyandcostreductions,withfurthergrowthexpectedfromnon−retailserviceslikecloudcomputinganddigitaladvertising[6]−Amazongenerated116 billion in cash from operations last year, with the stock trading at 20 times this figure, suggesting solid value for investors [7] Group 2: Alphabet (Google) - Alphabet, with a market cap of 2.2trillion,ownsvaluableinternetpropertieslikeGoogleandYouTube,eachwithover2billionregularusers[8]−Thecompanyleveragesartificialintelligencetoenhanceitsproducts,with52 billion in capital expenditures last year focused on data centers and AI infrastructure, resulting in a 35% return on capital employed [9] - Revenue from all Google services grew 12% to 305billionlastyear,drivenbyadvertisingandsubscriptions[10]−GoogleCloudexperienced316.1 billion in 2024 [11] - Alphabet's free cash flow reached $72 billion last year, providing resources to maintain its technology leadership for decades [12] - The stock trades at 31 times trailing free cash flow and 20 times expected earnings for 2025, indicating potential for great returns [13]
Amazon(AMZN) The Motley Fool·2025-02-27 09:40