Amazon's net worth
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Today, Amazon is known as the giant of the e-commerce industry. It is one of the largest corporate empires in the world, which is a long way from its humble beginnings. It went from being an online bookstore to being the Goliath of the retail world, innovating and disrupting everything we thought we knew about shopping, delivery service, and consumer behavior. Amazon has a very expansive and diversified business portfolio, so they have their hands in lots of pies across various industries. Through risk-taking and cutthroat business models, Amazon’s net worth has become the stuff of legends.

The company was founded in 1994, by Jeff Bezos, who still presides over it as Amazon’s CEO and largest stockholder. Under his leadership, Amazon has grown from being just a small niche business into a global conglomerate that affects nearly every aspect of life from food to cloud storage. After Alibaba, Amazon is the largest online retailer in the world which allows you to shop for practically any product that you can think of. Considering how much reach and control that it has in the global marketplace, Amazon’s net worth, while unbelievable is not at all surprising. So how much is the e-commerce giant really worth? Let’s take a look.

How Much Is Amazon Worth In 2019?

If you haven’t already guessed by now, Amazon’s net worth is ridiculously huge. In September 2018, it became the second company in the history of the world to reach a market capitalization value of over $1 trillion. Although this is based on the fluctuating stock market attitudes, it is still a great way to measure the value of a company, because it tells you how much all of the company’s stock is worth at a given point in time.

However, market capitalization does not really paint a clear picture of a company’s value. Based on the valuation of revenue, profits, assets, and debts over the years, Amazon’s net worth is estimated to be between $639.1 billion and $1 trillion. It’s hard to say for certain as the company tends to be very secretive about these things.

The truth of the matter is that Amazon is growing at an amazing rate, and this growth is aided by its investment and acquisition of other companies such as Whole Foods and Zappos. Since it was founded, Amazon has purchased at least 128 companies spanning across different industries such as transportation and logistics, media production and entertainment, artificial intelligence, clothing, food and other consumer products, publishing, financial services, and much more. The company has no intention of slowing down in its pursuits, which means Amazon’s net worth is going to continue rising significantly in the coming years.

How Do They Make Their Money?

Jeff Bezos’ Net Worth
Amazon’s CEO Heff Bezos: Image Source

Amazon is primarily a retail business, and this is where it derives most of its money from. However, it also enjoys revenue and income from other sources as well. The businesses and products that have helped make Amazon the cash cow that it is can be segmented as follows.

E-commerce

In the United States, Amazon is the biggest e-commerce company, controlling about half of the entire market. In the world, it is the second largest. Other than just selling directly to consumers, Amazon also makes money from selling access to their platform and other services to merchants and other users. The company makes its own brand of products and services such as Fire TV, Fire Tablets, Kindle, and Alexa, Amazon’s virtual personal assistant. It also has its own video content product, streaming platform and subscription service, Amazon Prime.

Cloud Computing

In 2006, the company rolled out Amazon Web Services, a cloud computing business that allows individuals and corporate bodies to store information and deliver content anytime and anywhere. Today, AWS is one of Amazon’s highest revenue-generating businesses, and it controls a third of the market share in the cloud business.

See Also: How Much Is Apple Worth In 2019 And How Do They Make Their Money?

Digital Advertising

Another major way that Amazon makes money is through online advertising. It currently controls 7% of the market share and made $10.1 billion in ad sales in 2018 alone.

When combined with other businesses and services that the company offers, this is how Amazon makes a lot of money to keep its investors and stakeholders happy. If it keeps growing at this rate and appreciating in value, Amazon might actually succeed in grabbing and holding on to the title of the richest company in the world for a long time.

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