Amazon's business model, historical growth, and future potential are analyzed, focusing on whether its current valuation presents a buying opportunity. Amazon's flywheel, centered on customer experience and driven by Prime, logistics, and its advertising business, is examined. The discussion highlights the increasing dependence of merchants on Amazon's advertising platform and the competitive landscape in e-commerce, with companies like Shopify offering alternatives. Amazon Web Services (AWS) is identified as a major profit driver, with its high margins offsetting the lower profitability of the e-commerce business. The potential of Project Kuiper, Amazon's satellite internet initiative, and the impact of tariffs and capital expenditure on Amazon's financial performance are also considered.
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