How much is amazon worth? is a trending question on the lips of many and through the keyboards/keypads of many across the globe today.
For the record, Amazon is the second most valuable company in the whole world right now.
With a valuation of about $1 trillion, what started as a modest book merchant became the biggest success from the late90s boom.
Now its founder Jeff Bezos is the wealthiest man on earth. And it seems he is poised for the world domination.
So How Much is Amazon Worth?
But what is the company’s value beyond its massive stock market prize?
Investing in itself has being a core principle of Amazon’s business and it doesn’t show any sign of flagging.
The company has held fast to its “it’s always day one” mantra introduced by Jeff Bezos back in the 90s.
Amazon’s internal investments also keeps its tax bills down saving the company good money.
While we don’t know exactly what Amazon pays in taxes, there is estimate suggesting it’s low thanks in part to its huge investments in its business.
What we do know is that its taxes have provided plenty of further for presidential candidates.
Example Joe Biden who has mentioned this on campaign and Elizabeth Warren who included the company as a case study in her new corporate tax proposal.
President trump has also queried the company for not paying enough in taxes.
But Amazon has responded saying it pays what the government says it is owes.
And the end result is about keeping plenty of profit to themselves.
They made $280 billion in sales in 2019, $232 BN in 2018, $177 BN in 2017, $123BN in 2016
That is a huge year on year increase and with the company’s policy on reinvestment, it seems poised to make much more in coming years.
Perhaps we must have started having a faint idea of what the answer to the question “How much is Amazon worth?” will be.
This result from Amazon’s rock solid corporate statistics, more than 100 Million people subscribe to the Amazon prime program at $12.99 dollars per month..
And $1400 is the average spent by Amazon on Prime members each year.
Considering that Amazon had only 1.5 million customers in its first year, this is massive growth.
And these customers are not shopping for a single item; Amazon shipped more than 5 billion items worldwide in 2017 alone.
What is the net worth of Amazon?
Net income is the amount that a company makes after accounting for cost and taxes.
Amazon’s net income was $10BN in 2018 and $3BN in 2017.
As at now, Amazon net worth is about $1 trillion.
Of course they sell numerous products now and Amazon prime is a huge source of new movies and series like The Man in the High castle and Transparent.
In addition, Amazon cloud computing business is less comprehensible to an average consumer but it is no less profitable.
Amazon web services made a $25BN profit in 2018 alone representing 11% of its total profit.
Web services are poised to becoming huge money making avenues in coming years.
It still makes a vast majority of its profit in North America, but it is expanding all across the globe.
Skeptics claim that because of Amazon’s reinvestment strategy, they rarely turn a sizeable profit.
And this was true for many years but now the strategy has paid off .
And anyone who bought Amazon stock years ago will be thanking himself and happy..
In 2010, the price was hovering around $100 but now it goes for above $1700 meaning the investment would have increased by about 1700 percent in 10 years or more.
The quest for world domination continues as Amazon gobbles up many popular companies including the audio books sales “audible” and gaming platform called “twitch”.
It also owns clothing distributor zappos.com and Amazon wholefoods.
Amazon’s growth and encroachment into some business territories has directly or indirectly affected a couple of other competitors such as Wallmart, Borders Books Macys and others.
Even though Amazon has some vocal critics, but they still appear to have the highest patronage.
Its detractors bring up the fact that Amazon treats its workers poorly and pays them below the living wage.
Then there are the environmental issues. Many believe Amazon create a lot of waste in the course of doing their business which it is it does not manage properly..
In all these, the fact still remains that Amazon is extremely popular and Jeff Bezos the mysterious Billionaire behind the company continuous to get richer and richer.
With the net worth of more than $100 BN, Bezos is easily the richest person in the world.
Amazon has over 800,000 employees with a well-focused determination and superior business strategy.
As an investor, it is really important and up to you to first determine how much is Amazon worth before making any move.
We do hope this article was helpful to help you gain an insight into really how much is Amazon worth.