Saturday, October 17, 2020

Amzn stock: tech stock - AWS cloud - largest public cloud platform in the world

 Another high growth tech stock is Amazon (AMZN - Get Rating), which is also part of the Berkshire Hathaway portfolio. Amazon is the largest e-commerce retailer in the world and while the traditional retail segment has been massively disrupted due to COVID-19, the online platforms have seen an equally surprising surge in demand.

The ongoing pandemic has acted as a tailwind for Amazon and several other e-commerce peers including Shopify (SHOP) and Etsy (ETSY). The shift to online shopping is a fundamental change in consumer shopping behavior which is here to stay. Total online sales accounted for 16% of total retail sales in the second quarter of 2020, up from just 11% in the fourth quarter of 2019.

Investors can expect this figure to move higher over the upcoming decade. Further, there is tremendous growth for Amazon in emerging economies such as India where online shopping is still at a nascent stage.

Amazon’s other business segment such as Amazon Web Services and Amazon Advertising will also support top-line growth. AWS is the largest public cloud platform in the world while its ad platform is the third-largest digital platform after Facebook and Google.

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