Another US technology giant has fallen more than 20%, its market value has evaporated by trillions, and its profits are less than half of Ali!

Views:5     Author:Site Editor     Publish Time: 2018-12-14      Origin:Site

After Apple value exceeded $1 trillion, in September of this year, the market value of the global e-commerce giant Amazon also broke through the trillion mark. Amazon has been losing money since its establishment in 1995, but its abnormality is its The stock price has remained high, and the market value has soared in recent years, doubling from last year's $500 billion. However, after the peak, US technology stocks began to fall, and Amazon's market value also fell nearly 200 billion US dollars, about 1.37 trillion yuan.


People familiar with Amazon know that Amazon's net profit has never been high. A simple comparison, Amazon's revenue in the first three quarters of 2017 was $177.8 billion, and Alibaba's revenue was $28.6 billion, while Amazon's profits. It is 3 billion, and Alibaba's profit is 8.9 billion. The market value is more than a Wal-Mart Amazon. The revenue is more than six times that of Ali, but the profit is less than half of Ali. And the beginning of profitability is also a matter of recent years, in 2012 and 2014, Amazon has suffered losses.


E-commerce is not Amazon's main profit growth business


Amazon, which started selling books, has long discovered that e-commerce business can no longer support revenue. Because early e-commerce has strong seasonality, and book sales have been losing money, in order to make a living, Amazon founder Bezos In 2002, he turned his attention to the new business, cloud computing services, and launched AWS in 2006, two years earlier than Google's GAE.


The so-called cloud computing service is to supply IT services like hydropower plants and power stations to supply hydropower. Analogously, suppliers like Amazon have built large-scale IT infrastructure and provided infrastructure services to enterprises in the form of web pages. So companies don't have to spend a lot of money and time building local IT infrastructure. For Amazon, Maori is very worthwhile in 20% of its business.


Up to now, Amazon has become the largest public cloud vendor in the four major regions of the world, accounting for more than 40% of the market. Good market share also brought huge profits to Amazon. In the 2017 fiscal year, AWS revenue was $17.5 billion, up 43% year-on-year. In the third quarter of this year, AWS contributed $6.68 billion in revenue to Amazon, with a profit of 2.1 billion. The US dollar, which accounts for 73% of total profits, is the main contributor to Amazon's net profit.

In addition to cloud services, Amazon has also made great strides in the field of artificial intelligence, and artificial intelligence assistants Amazon Alexa and smart audio have also entered thousands of households.


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