Core Viewpoint - Amazon is the largest e-commerce and cloud infrastructure company globally and continues to be a growth stock that outperforms the market [1] Group 1: Revenue Generation - Amazon primarily generates revenue from its retail business, which operates e-commerce marketplaces in over 24 countries and includes Whole Foods Market and some physical stores [3] - The majority of Amazon's profits come from Amazon Web Services (AWS), which held a 32% share of the global cloud infrastructure market in Q2 2025, significantly ahead of competitors like Microsoft Azure (22%) and Google Cloud (11%) [4] - In the first nine months of 2025, AWS contributed 18% of Amazon's net sales and 60% of its operating profit [4] Group 2: Business Strategies - AWS's high-margin revenues allow Amazon to enhance its subscription-based Prime ecosystem, offering discounts, free shipping, streaming services, and affordable hardware, which strengthens customer loyalty [5] - Amazon's advertising services accounted for 9% of its revenue in the first nine months of 2025, likely operating at higher margins than its retail business, indicating potential for growth as a secondary profit engine alongside AWS [6] Group 3: Recent Performance - Over the past three years, Amazon's stock has outperformed the S&P 500, with its e-commerce and cloud businesses continuing to grow [8] - In 2022, Amazon's net sales increased by only 9%, and its operating margin fell from 5.3% to 2.4%, partly due to inflation affecting consumer spending and a slowdown in cloud spending [9]