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Amazon is an American multinational technology company based in Seattle, with headquarters in Redmond, Washington. Amazon is the largest Internet company by revenue in the world. Amazon.com was founded by Jeff Bezos on July 5, 1994, and started as an online bookstore, but soon diversified, selling DVDs, CDs, MP3s, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—notably, the Amazon Kindle e-reader and
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Introduction
Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as “one of the most influential economic and cultural forces in the world”, as well as the world’s most valuable brand.
Amazon was founded by Jeff Bezos in 1994, and originally started as an online bookstore. However, it soon diversified into other areas such as selling DVDs, CDs, MP3s, software, video games, electronics, apparel, furniture, food, toys and jewelry. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. In 2017, Amazon acquired Whole Foods Market for $13.7 billion—making it the largest acquisition in its history.
As of June 2018 , Amazon’s market capitalization is $768 billion—making it the second most valuable public company in the world after Google—and is also the fifth largest employer in the United States with over 575 thousand employees .
History
Amazon.com, Inc. is an American multinational technology company based in Seattle that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four tech companies, alongside Google, Apple, and Facebook.
Amazon was founded by Jeff Bezos in 1994, and the company started as an online marketplace for books but soon expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. In 2017, Amazon acquired Whole Foods Market for $13.4 billion dollars, which vastly increased Amazon’s presence as a brick-and-mortar retailer. The company also owns Amazon Web Services and serves as the largest provider of cloud infrastructure services in the world.
As of March 2021, Amazon’s net worth was an estimated $1.96 trillion dollars making it the most valuable company in the world.
Business model
Amazon.com, Inc. is an American e-commerce and cloud computing company headquartered in Seattle, Washington. It is the largest Internet-based retailer in the United States by total sales and market capitalization. Amazon.com was founded by Jeff Bezos in 1994, and started as an online bookstore but later diversified to sell electronics, software, video games, apparel, furniture, food, toys and jewelry.
The company has a complex business model with many revenue streams. Amazon makes money through three main business segments: online retailing, third-party seller services, and cloud computing services. Online retailing is Amazon’s core business segment and generates the largest portion of its revenue. In 2018, net sales from online retailing accounted for around 78% of Amazon’s total operating revenues. Third-party seller services is another significant revenue driver for Amazon and includes fees charged for listing products on its platform as well as commissions charged on each sale. Cloud computing services is a relatively new business segment for Amazon but is one of the fastest growing and most profitable businesses for the company.
Revenue
Amazon is an American multinational technology company based in Seattle, Washington that focuses on e-commerce, cloud computing, and artificial intelligence. Amazon is the largest Internet-based retailer in the world by total sales and market capitalization. Founded in 1994 by Jeff Bezos, Amazon was originally meant to be an online bookstore but soon diversified to sell a wide variety of consumer goods and digital content.
In 2018, Amazon had revenue of $232.887 billion, up from $177.866 billion in 2017. This figure includes revenue from third-party seller services, advertising sales, and subscription services such as Amazon Prime. Excluding these figures, net revenue was $136.154 billion in 2018. Net income was $10.07 billion in 2018, up from $3.033 billion in 2017.
Net income
Amazon had a net income of US$3.03 billion in the fourth quarter of 2016, an increase of 43% from US$2.13 billion in the fourth quarter of 2015.
Assets
Amazon’s assets totaled $232.9 billion at the end of 2018, up from $uminus$177.9 billion at the end of 2017. This increase was driven by Amazon’s booming stock price, which rose by nearly 60% in 2018. Amazon’s total liabilities rose to $61.7 billion at the end of 2018, from $52.9 billion a year earlier. This increase was driven by the company’s continued expansion into new businesses and geographies.
Liabilities
Amazon Net Worth is a website that tracks the estimated worth of major online retailers. As of September 2018, Amazon’s net worth was estimated at $602 billion. This number is based on the company’s total assets minus its total liabilities.
Total assets are typically divided into two categories: current assets and long-term assets. Current assets are those that can be easily converted to cash within one year, such as cash, inventory, and accounts receivable. Long-term assets are those that will take longer than one year to convert to cash, such as property, plant, and equipment.
Total liabilities are also typically divided into two categories: current liabilities and long-term liabilities. Current liabilities are those that will come due within one year, such as accounts payable and short-term debt. Long-term liabilities are those that will take longer than one year to come due, such as long-term debt.
Amazon.com, Inc. (NASDAQ: AMZN) has a market capitalization of $1.64 trillion as of March 12, 2020. Amazon’s shareholders’ equity was $34.4 billion as of December 31, 2019. This means that Amazon’s net worth is approximately $1.61 trillion as of March 2020.
Amazon’s shareholders’ equity increased by $10.3 billion during 2019. This was primarily due to an increase in retained earnings of $9.4 billion and an increase in other comprehensive income of $0.9 billion offset by a decrease in common stock and paid-in capital of $0.2 billion and an increase in treasury stock of $0.1 billion
Criticism
There is no doubt that Amazon is one of the most powerful companies in the world. However, it has not been immune to criticism. One of the main criticisms levelled against Amazon is that it has a monopoly on many markets. This means that it can charge high prices for its products and services and limit consumer choice.
Another criticism of Amazon is that it has been aggressive in its tax avoidance schemes. It has been accused of using shell companies and loopholes to avoid paying billions of dollars in taxes. This has led to calls for stricter regulation of the company.
Finally, Amazon has been criticized for its treatment of workers. In particular, its warehouses have been accused of being unsafe and unhealthy places to work, with high rates of injury and stress.
Conclusion
As of May 2019, Amazon’s net worth is estimated to be $893 billion. This makes them the second most valuable company in the world, behind only Apple. Amazon has continued to grow at an incredible rate, with their value increasing by over $100 billion in just the last year. It is likely that they will continue to grow at a similar rate in the coming years, cementing their place as one of the most valuable companies in the world.
