By
Godfrey Benjamin
April 26th, 2024
Amazon (AMZN) stock is in the green these days. Meanwhile, there are indications showing that the company’s media assets are more valuable than its cloud computing business.
Amazon.com Inc (NASDAQ: AMZN) stands as one of the most valuable companies in the world today and its media business makes a huge contribution to its overall performance. The company which recorded a massive uptick in revenue in the heat of the coronavirus back in March has remained profitable since it turned its first profit in 2001.
The company’s financials are bolstered with a current 1.66% increase in the stock value yesterday with a further 0.50% boost in the pre-market today. The current stock price of $2,623.00 is a valid indicator of how valuable the company’s stock is. This remarkable feat is thanks to the diverse range of online media services the company renders.
Amazon’s Journey
Amazon has a rich and inspiring history. The company was started by Jeff Bezos on July 5, 1994. The company was initially incorporated as Cadabra Inc. After a few months, he changed the name to Amazon.com Inc because a lawyer misheard its original name as “cadaver”. After reading a report about the future of the Internet that projected annual web commerce growth at 2,300%, Bezos created a list of 20 products that could be marketed online. He narrowed the list to what he felt were the five most promising products, which included: compact discs, computer hardware, computer software, videos, and books. Bezos finally decided that his new business would sell books online, because of the large worldwide demand for literature, the low unit price for books, and the huge number of titles available in print.
Over the years, the company grew to become an eCommerce giant, generating billions of dollars in revenue with a staff estimate of over 566,000.
Amazon’s Media Business
A highly valuable media business aspect of Amazon is its media assets which include Twitch, Prime Video, and Prime Music collectively estimated to worth over $500 billion. As reported by CNBC, Needham analyst Laura Martin believes that Amazon’s media outlet is more valuable than its giant cloud computing outlet.
By virtue of the growth brought about by the company’s media streaming services, Martin projected a $3,200 price target on the company’s stock, though she said it’s worth $4,500 to $5,000 a longer-term.
A major economic twist is the growth of Amazon during the coronavirus that incapacitated many companies and also rendered Americans jobless. As a major contribution to help the ailing economy, the retail giant is set to open a web service facility that will help provide about 600 jobs in Seattle, Washington. This move begs commendation and has the potential to earn the firm goodwill that can also see boosted future performances.