Trade The Journey

Trade The Journey

Amazon Analysis Part 1

 

https://ir.aboutamazon.com/annual-reports

Hope all is well and you checked the notes on Fed Chairman Powell’s speech. What do you think? Stocks then proceeded to make a climb after sliding back recently. GM laid off 14,000 workers as it moves its plants to Mexico. It discontinued producing the Cruze and is now shifting to small suvs. Thinking about GM and the Powells speech makes one wonder, how long before companies begin to leave and how long before people begin to default not only on their houses but their spending as well.

This week, I’m looking at Amazon. I decided to read their annual report, proxy report to get a better idea of the strategy, financial picture, and direction of the company. Looking at the statements from a year or two years back can give you a good idea if Amazon has followed through with its stated strategy and how well it is managing its finances to accomplish their strategy.

484,969,744 shares of common stock outstanding and entitled to vote.

The board is well diversified in experience, including board directors that have experience in technology, government matters, Media, Venture Capital, Non-profit and telecommunications. Most of the board has served for many years and all of the board members are quite experienced in their prospective fields. Employees are rewarded with restricted stock awards that have long-term vesting periods. Employees are not rewarded with short-term rewards as Amazon feels that would be counterproductive to its longevity.

Jeff Bezos is the companies largest shareholder so it can be reasoned he has committed himself to the company long term. He is the chair of the board of directors.

There are 3 committees: The Audit Committee, Leadership Development and Compensation Committee, Nominating and Corporate Governance Committee.

Latest Grievances raised by shareholders: Diversity in the board, impartial Board Chair, Voting Transparency, and specific environmental reports from what I saw.

Strategy: Long Term

Amazons Mission Statement or Principles :

  • ┬ácustomer obsession rather than competitor focus
  • passion for invention
  • commitment to operational excellence
  • Long-term thinking.

Customers:

  • consumers
  • sellers
  • developers
  • enterprises
  • content creators

Competitors (https://www.marketing91.com/amazon-competitors/) Here’s a few from the list of its online Competition, I recognize.

  • Alibaba
  • Ebay
  • Priceline
  • Walmart

Amazon operates in physical and online locations both domestically and internationally.

They provide many services to consumers through their products and services and through third-party sellers. They offer original products and services that allow customers to create content, store content an deliver content, taking a percentage of the sales to varying degrees based on the seller.

They also acquired Whole Foods which signals Amazons agility and willingness to move into new markets.

Here are the numbers I have begun to look at to get an idea of the position Amazon is in.

Leave a Comment

Your email address will not be published. Required fields are marked *