AMAZON STOCK ANALYSIS
5 great tips from our partners Brian Feroldi and Brian Stoffel
It doesn’t seem like Amazon (AMZN) can possibly fail, but have you really dug into the fundamentals of the corporation?
Our partners Brian Feroldi and Brian Stoffel analyzed the stock earlier this week on YouTube. Here are 5 great tips they shared:
1️⃣ Amazon utilizes a MAJOR network effect through their e-commerce store, where most of the products for sale are from third-party vendors. Businesses benefit from involving themselves in the Amazon ecosystem and the company profits off this. 👀
2️⃣ Not only does Amazon run an incredible e-commerce store, but it also takes care of all fulfillment and delivery logistics, produces e-readers and other devices, operates Whole Foods, and the AWS cloud service which drives major profits! 💰
3️⃣ In 2005, the company decided to attempt to turn any major cost into a source of revenue. It costs less internally for Amazon to deliver something for you than it would cost any other company! This allows the corporation to pass along those savings to both partners and customers alike. 📊
4️⃣ There is slightly higher debt and a lower cash flow than in past years due to COVID, but there is some clear flexibility and ability to withstand the pressure that we see with $7 billion in free cash flow and $90 billion in cash on hand.
5️⃣ Jeff Bezos has some major skin in the game. His 14% share as of April 2021 would be worth $230 Billion dollars. That’s nearly a quarter of a trillion dollars! He still sits on Amazon’s Board of Directors. Check out Brian and Brian’s analysis here:
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