Core Insights - Amazon.com, Inc. is a leading global technology and retail platform, excelling in e-commerce, cloud computing, and digital advertising, while also venturing into AI infrastructure and subscription services [2][3] Financial Performance - Amazon generated over $670 billion in annual revenue, with a cash balance exceeding $100 billion and improving free cash flow, indicating strong financial health and a competitive advantage across various industries [3] DCF Analysis - The DCF model indicates a total present value of forecasted free cash flows of $164.1 billion, with a terminal value of $957.1 billion, leading to an enterprise value of $786.6 billion [4] - After accounting for net debt of $29.7 billion, the equity value is calculated at $756.9 billion, resulting in an intrinsic value per share of approximately $71 [5] Market Valuation - The current market price of Amazon shares is around $249, suggesting a margin of safety of -72%, indicating that the stock is trading significantly above its intrinsic value [5] - Despite Amazon's strong market position and growth potential, the high market valuation reflects expectations of robust growth and profitability in the coming decade [5]

Core Insights - Amazon has a significant market capitalization of $2.45 trillion and generates approximately $650 billion in annual revenue, with a net profit margin of around 10% [8][9] - The company employs about 1,556,000 full-time and part-time employees, making it the world's second-largest employer [7] - Amazon's brand value is estimated at $356 billion, ranking it as the fourth-most valuable brand globally [11] Company Background - Amazon was originally named Cadabra before being rebranded to its current name, which reflects its wide range of products from A to Z [4] - The company has evolved from a simple online retailer to a major player in various sectors, including cloud computing with Amazon Web Services (AWS) [12][13] Financial Performance - Since its IPO in May 1997, Amazon has experienced an average annual growth rate of 32%, turning an initial investment of $10,000 into nearly $26 million [9] - The company derives 59% of its revenue from services, indicating a strong presence in the cloud computing market [12] Business Diversification - Amazon operates multiple businesses and brands, including Whole Foods Market, Zappos.com, and Twitch, and offers various services under the Amazon Prime umbrella [12][13] - The company has also ventured into healthcare and robotics, indicating a strategy of diversification and innovation [13]