Amazon: The King Of Operating Leverage

Jan. 27, 2023 12:16 AM, Inc. (AMZN)GOOG, MSFT, GOOGL55 Comments
Taron Kwak profile picture
Taron Kwak


  • Amazon's business units consist of two seemingly unrelated businesses, retail and cloud businesses.
  • However, both businesses have much in common and can tremendously benefit from their operating leverage.
  • When there is significant operating leverage in business, it is important having long-term growth potential and sound capital allocation.
  • But the stock market seems preoccupied with its short-term performance, making it a good investment opportunity for long-term investors who understand Amazon's true potential.

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

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Investment Thesis (NASDAQ:AMZN) still has a long runway for growth in its market and has been run by a good management team well known for having a long-term view. Its

This article was written by

Taron Kwak profile picture
Hello, I am from South Korea and a CFA charter holder since 2018. I like to invest in a company with attractive valuation and great qualities. Thank you.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AMZN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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