NASDAQ with the Amazon.com summary shows that the share price closed at $ 949.04 with a market cap of 453.6 billion and the P / E ratio of 178.39.
The market capitalization of 453.6 billion is 110 times the first quarter of 2011 by Amazon.com Q1-2017, a twelve-month EBIT (TTM) of 4.12 billion.
AWS contributed 77.5% of EBIT Q1-2017 TTM 4.12 billion, which helped keep ongoing earnings growth for AWS vital to Amazon.com.
Investors who buy at $ 949.04 on Monday, intending to hold for five years pending an average return of 10.0% per annum, will sell five to 1,528.44 $ per share. If the expected return on investment is a doubling of the share price, an exit price within five years will be required $ 1,898.08, representing a return of 14.87% per year.
At an expected return of 20% per year, the sale price is $ 2 361.52 per share. However, if the price / EBIT (P / EBIT) ratio should remain at current 110 and provide the outstanding shares remain at 478m, EBIT in five years would only increase by 4.12 billion US dollars. To 6610 million for 10% yield, 8.24 billion for the yield of 14.87% and 10.25 billion for the return on investment of 20% per year. The net profit estimated after interest and taxes for the year 2021, in these scenarios would be between 4 billion and $ 7 billion. Now this level of compensation seems very feasible for this genius online, with a total turnover of 136 billion in 2016. However, there are many "ifs" mentioned above, which means that many uncertainty and increase in Uncertainty equals greater risk. Therefore, investors should definitely look back Amazon.com in the range of at least 10% to 20% and maybe higher.
For performance expectations below 10%, I am sure there are much safer investment options. Stock price gains were averaging over 33% per year between the end of 2011 and the end of 2016, the stock price increasing from $ 179.03 to $ 753.67. From the end of 2016 to May 8, 2017, a further increase of 26% brought the stock price to $ 949.04. I have to ask if there is a quantification of future growth in EBIT would justify stock price increases and the size of the role expected of AWS to contribute to EBIT growth?
Sunday, May 14, 2017
Tuesday, May 2, 2017
Bumper growth for Amazon competitors no threat to AWS dominance
Competitors from Amazon Web Services narrow the gap in the giant cloud infrastructure service provider, recording significantly higher growth in the last quarter, but this does not prevent AWS as the market reached nearly $ 10 billion - with a Growth of 40%.
The new Synergy Research Group figures show that Microsoft, Google, IBM, Oracle Alibaba and all have a "significantly higher" Q1 growth rate than AWS, Microsoft, Google and Alibaba with growth of 80% or more .
However, despite the strong growth of its competitors, Synergy Research claims that AWS remains "in a clean league" with "comfortably large" revenue that every five competitors put together.
John Dinsdale, Synergy Research Group, says the first part of the cloud vendor market now shows a clear stratification with AWS, a group of fastest growing hunters and some other niche players run on Salesforce and Rackspace.
While Salesforce and Rackspace have lower growth rates than other companies, Synergy said both maintain a strong position in their niche markets.
"Beyond these leading companies, the cloud market has a long tail of small and medium-sized suppliers or businesses that have only a minor position in the market, usually based on a specific country or area of application Specific, "Dinsdale said.
"There are decent growth opportunities for some of these smaller players, but it is unlikely to have a big impact in terms of global market share in the world," he added.
Synergy Research estimates the quarterly revenue of cloud infrastructure services, which include infrastructure-as-a-service, platform-as-a-service cloud services and hosted, came "nearly" 10 billion US dollars and Continue to grow at more than 40% per year.
AWS, Microsoft and Google are the leaders in the IaaS / PaaS space, while IBM continues to lead a private cloud offered.
Synergy says the private cloud offered is where Rackspace and some traditional service providers offer more features than the public cloud.
The new Synergy Research Group figures show that Microsoft, Google, IBM, Oracle Alibaba and all have a "significantly higher" Q1 growth rate than AWS, Microsoft, Google and Alibaba with growth of 80% or more .
However, despite the strong growth of its competitors, Synergy Research claims that AWS remains "in a clean league" with "comfortably large" revenue that every five competitors put together.
John Dinsdale, Synergy Research Group, says the first part of the cloud vendor market now shows a clear stratification with AWS, a group of fastest growing hunters and some other niche players run on Salesforce and Rackspace.
While Salesforce and Rackspace have lower growth rates than other companies, Synergy said both maintain a strong position in their niche markets.
"Beyond these leading companies, the cloud market has a long tail of small and medium-sized suppliers or businesses that have only a minor position in the market, usually based on a specific country or area of application Specific, "Dinsdale said.
"There are decent growth opportunities for some of these smaller players, but it is unlikely to have a big impact in terms of global market share in the world," he added.
Synergy Research estimates the quarterly revenue of cloud infrastructure services, which include infrastructure-as-a-service, platform-as-a-service cloud services and hosted, came "nearly" 10 billion US dollars and Continue to grow at more than 40% per year.
AWS, Microsoft and Google are the leaders in the IaaS / PaaS space, while IBM continues to lead a private cloud offered.
Synergy says the private cloud offered is where Rackspace and some traditional service providers offer more features than the public cloud.
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