2 Reasons I'll Never Sell Amazon Stock

Core Viewpoint - Amazon has experienced significant stock growth of over 500% in the past decade, driven by its strong e-commerce business and competitive advantages [1][2]. Group 1: Competitive Advantages - Amazon possesses a strong competitive advantage, or "moat," which helps it maintain its leadership in e-commerce and leads to stronger earnings over time [3]. - One key advantage is Amazon's extensive delivery network, which includes fulfillment centers and delivery systems that are difficult for competitors to replicate. Recently, Amazon improved efficiency by transitioning to a regional fulfillment network in the U.S. [4]. - Another significant advantage is the Amazon Prime membership program, which offers a variety of products and services, encouraging customer loyalty and repeat purchases [5]. Group 2: Business Growth and Profitability - While Amazon is widely recognized for its e-commerce platform, a substantial portion of its profits comes from Amazon Web Services (AWS), which accounted for 65% of the company's overall operating income in the most recent quarter [7]. - AWS is the leading provider of cloud services globally and has seen considerable growth, with its annualized revenue run rate recently reaching $132 billion, further boosted by the artificial intelligence (AI) boom [8][9].