Where Will Amazon Be in 10 Years?
Amazon (NASDAQ: AMZN) is the ultimate growth stock. That's not just because it has a ton of room to grow in the huge retail and cloud computing markets, but also because it's constantly working to invent big new businesses from scratch. No other company continuously surprises investors with unexpected value creation from new ventures. So where could Amazon be in 10 years?
It's no secret that Amazon's e-commerce business is a juggernaut, and it's only been getting stronger because of the acceleration of e-commerce adoption due to COVID-19. There just aren't a lot of compelling reasons to frequent physical retail stores in a post-COVID world when you can order online from your couch, usually at lower prices, and receive your order in a day or two. That's especially true when Amazon offers such a great customer value proposition.
But what's less appreciated is Amazon's still tiny market share of the global retail market. The global retail market is a massive $25 trillion market. Over the last 12 months, Amazon's e-commerce business had $202 billion of net sales, which is only about a 0.8% share of the retail market. So as much of a juggernaut as Amazon's retail business is, it's still a tiny -- but rapidly growing -- fish in a huge pond.
Source Fool.com
