On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through.
Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks.
Amazon's main advantages are:
1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States.
2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future.
3. The international expansion of Amazon's e-commerce has just begun, and it has just begun to make a profit. The future is to replicate the successful model of the US market in the international market.
4. Amazon's advertising business is developing rapidly, and its membership business is booming. The gross profit margin of these businesses is extremely high.
5. Amazon's e-commerce moat is very wide, and its low price and continuous high investment in logistics have scared away many potential competitors. Amazon Flywheel even locked its members.
Therefore, based on the above reasons, I am very optimistic about Amazon.
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