Amazon Could Be Worth $1 Trillion In 2018
Amazon is on pace to become one of the first-ever $1 trillion companies by the end of 2018, and its many high-margin business operations could push its stock to $2,000 per share, according to a note from Morgan Stanley described by Business Insider. Morgan Stanley analyst Brian Newark broke down Amazon into its various businesses, giving each a value on its own, with retail at $600 billion, Amazon Web Services at $270 billion, Prime subscriptions at $70 billion and advertising at $55 billion — for a total of $995 billion. By Newark’s measure, Amazon’s retail business will see 13% annual sales growth, a 5.5% operating margin, and, for its marketplace alone, a 25% profit margin by 2022, according to the report. Its advertising business is formidable, with an estimated 22% compound annual growth rate by 2022, according to Newark. Amazon’s business units are growing at various paces, but they’re providing the e-commerce giant with ample reserves to invest back into its operations — and its ambitions. Read more at Retail Dive.
