Amazon.com, founded by Jeff Bezos initially in a garage, would grow over three decades into one of the world’s largest companies. In its most recent fiscal year, 2024, the e-commerce giant recorded total sales of $638 billion, achieving an operating profit of $68 billion. With its robust operating cash flows amounting to $115 billion—adjusted to over $93 billion after accounting for stock-based compensation (SBC)—the company is well-positioned to make substantial investments. This particularly in the field of Artificial Intelligence (AI), with Amazon allocating a total of $83 billion to capital expenditures (CAPEX) in 2024. For 2025, it is anticipated that the company will invest more than $100 billion, underscoring that it has long outgrown its origins as an online bookstore.
In this Deep Dive, I will guide you through the key milestones in Amazon’s inception and subsequent evolution, as well as the lessons we can glean from Jeff Bezos’ 27 years of entrepreneurial leadership. Among other topics, we will explore Bezos’ Regret Minimization Framework, Amazon’s Working Backwards Model, and its Flywheel concept, along with the influence of a co-founder and former CEO of another major U.S. retailer on these principles.
Next, Amazon will be examined as a conglomerate, comprising numerous business units stemming from internal projects and acquisitions integrated since its founding in 1994. This section will highlight current developments in the industries where Amazon operates and its positioning relative to competitors.
Following an analysis of Amazon’s financials, the foundations of its strong corporate culture will be outlined. This includes a discussion of Amazon’s 16 Leadership Principles and the role of Bar Raisers within the organization. The final chapters will address the risks and opportunities Amazon may face in the coming years.
Subsequently, through a valuation analysis, I will walk you through the market expectations for the sectors in which Amazon is active, as well as my specific perspective on the company. The discussion will conclude with a final summary.
Content:
- Author: Eelze Pieters
- Language: English
- Format: PDF
- Number of Pages: 93 (A4)
- Publication Date: April 5, 2025
- With Illustrations
Upon purchase, you will receive a download link at the email address provided, allowing you to download the E-Book in PDF format for personal use.
This is a Digital Product.
By purchasing this product, you agree to our General Terms and Conditions. These terms include, among other provisions, that this is a purchase of a digital product, with immediate access to the document(s) provided. By purchasing this product, you agree to waive your right of withdrawal. This means that after purchasing this product, you can no longer claim the right of withdrawal, the right of revocation, or the right of return. By completing your purchase, you acknowledge that you understand that your purchase is therefore final.