THE BEAST OF AMAZON
It's Friday, so it is time for the Avory Chart of the Week!
Since 2014, Amazon has gone from $88B in annual revenue to nearly $200B, and they show no desire to slow down. Our chart of the week shows Amazon's revenue contribution by segment. In 2014 Amazon was very much a one trick pony by selling goods through their online stores. This category generated $68B in 2014 and was 77% of total revenues. Since that time, Amazon has added $88B in total annual revenue of which 55% of that growth was NOT from their online store business. As shown in yellow, Amazon Web Services now generates $13B in revenue and grew by 276% since 2014. Additionally, Amazon's subscription business (in purple) is a $7B business today and increased by 252% since 2014. One interesting increase was their physical store presence, which currently generates $5.8B, or 7% of total revenue. The growth in physical highlights the need for online businesses to have physical locations to fulfill last mile deliveries along with building a local presence. I suspect that when we update this chart in several years, we will be talking about 3-5 more segments...
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
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