Key Facts about Amazon’s Market Performance
Amazon (NASDAQ: AMZN), with a market capitalization of approximately $2.5 trillion, ranks as the world’s fifth-largest company. Despite leading in e-commerce and cloud infrastructure, Amazon has underperformed the broader market over the past five years, with its share price increasing about 44%, compared to gains of 79% for the S&P 500 and 73% for the Nasdaq Composite.
Amazon Web Services (AWS) remains the company’s largest profit generator, contributing $11.4 billion of its $21.7 billion in non-GAAP adjusted operating income in the third quarter of last year, which is almost 53% of the total. While its e-commerce business currently generates the majority of sales, the adoption of artificial intelligence, robotics, and automation is projected to improve profit margins significantly in the next five years.
With sales tending towards becoming the highest revenue-generating company, trend advancements are leading some analysts to believe that Amazon could experience substantial growth in profitability, surpassing current levels in its core e-commerce operations.
