Amazon.com, Inc.

AMZN position long Bill Stewart, Stewart Asset Management

Thesis

Amazon has a booming business model with a significant portion of its revenue coming from marketplace products sold by third parties, which allows for high gross profit margins. Additionally, their Web Services division is a major operation, and their investment in retailing with their own stores could enhance their distribution capabilities. This dynamic growth leads to a high valuation multiple of 26x in year 5, suggesting strong future earnings potential.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time frame since the pitch, it's difficult to assess whether the thesis has played out. The thesis highlights strong growth potential in Amazon's business model, but without concrete evidence of performance or time elapsed, the outcome remains uncertain.

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