Amazon.com Inc (AMZN-US): Hyperion’s Monthly Portfolio Holding Focus

Portfolio Holding Focus: Amazon.com Inc (AMZN-US)

Amazon.com Inc provides global online retail shopping services to consumers, sellers, enterprises and content creators, including marketing and promotional services like online advertising and co-branded credit card agreements. AMZN-US designs its online shopping platform to enable products to be sold by both the company and third parties across a large variety of categories, with a focus on offering customers the lowest prices possible. Customers are able to become members of Amazon Prime, which offers free shipping, multimedia streaming, e-books on its Kindle product along with a multitude of other benefits. The company also owns Amazon Web Services (AWS), which provides both developers and enterprises access to technology and cloud infrastructure applicable to virtually any kind of business.

Hyperion’s View:

AMZN-US is a highly innovative business with an entrenched, customer-focused culture owing to its long-serving CEO and founder Jeff Bezos. The company holds a dominant market position particularly in its retail shopping marketplace and Amazon Web Services divisions. It has a powerful and highly efficient distribution network. AMZN-US continues to invest heavily in improving its value proposition to customers. Recently, AMZN-US acquired Whole Foods Market (WFM-US), which sells natural and organic foods and will increase the company’s physical presence, with stores in the United States, Canada and the United Kingdom.

The growth potential of AMZN-US is very high given the enormous retail spend in its marketplace and the global adoption of cloud-computing services, of which its AWS business is a leader by some margin. Importantly, the global expansion of its AWS and Amazon Prime businesses has been a relatively recent phenomenon and represents further avenues for growth.

Despite being one of the largest companies in the world, AMZN-US continues to deliver strong growth and is well positioned to benefit from the increasing global shift towards online retail and cloud-computing. Furthermore, we believe its commitment to innovation and technology will further reinforce the company’s competitive advantage.

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