CrispIdea | RESEARCH Amazon.com, Inc.

EQUITY RESEARCH Retail | E-commerce | Nov 30, 2021

Company Name Amazon.com Inc
Ticker AMZN.O

Amazon.com, Inc. Stock Rating BUY

Unchanged

Strong growth in AWS Industry View Overweight

Unchanged

12-Mo Price Target 4,150.00

We maintain ‘Buy’ rating for AMZN and its price target to $4150 for Unchanged
FY22. We estimate our price target based on forward P/E of 81.18x,
EV/Revenue of 3.77x, EV/EBITDA of 63.9x and P/S of 3.79 times for CMP (Nov 24, 2021) 3,580.41
FY22. Potential Upside 16%

We are positive on AMZN and see an upside of 16% at current price.

Our estimates are based on 1) Strong AWS Service and 2) Diversifying Market Cap (USD bn) 1,811.8
portfolio Shares O/S (Mn) 507.1
52 Week High 3773.0782
AWS is an incredible asset. It is in a very favorable market that is 52 Week Low 2881.0
rapidly growing and will keep on growing. That's the basis for the Avg Volume (3M) 3,158,605
high multiple and valuation. Avg Volume (10 days) 3,648,084
P/E (ttm) 69.9
P/S (ttm) 4.0
Strong AWS service: AWS has reaccelerated revenue growth as
P/B (mrq) 14.9
customers have expanded their commitment to the cloud and
Forward P/E 70.5
selected AWS as their cloud partner. As a result, Amazon's Q3
IBES EPS (ttm) 51.12
revenue of $110.8mn represented a two-year compounded annual
growth rate of 25% and 39% Y/Y in Q3, driven by a broad base of
services and customers. Profit Margin (TTM) 5.74%
Operating Margin (TTM) 6.21%
Amazon is now using AWS servers to stream games with Amazon Revenue (TTM in Mn) 457,965
Luna, using the flywheel, which will give certain exclusive and free Revenue per Share (TTM) 757.0
content through Amazon games as part of Prime gaming. We Qtrly Rev Growth (yoy) 15%
anticipate that by developing and publishing games for clients on Gross Profit (TTM in Mn) 189,172
Twitch, AMZN will engage an enthusiastic gaming community EBITDA (TTM in Mn) 67,904
online. Net Income (TTM Mn) 26,263
Qtrly Earnings YoY -50.44%
Prime videos and a fascinating portfolio of live sports, like the UEFA
Champions League and League One soccer in France, as well as NFL Retail Sector Research Team
Thursday night football in the United States, are helping the
Piyusha Sinha, Retail
company. We anticipate that this Prime content will benefit and
Research Analyst
boost the value of Prime membership.
[email protected]

Diversifying Portfolio: AMZN is broadening its offering by launching a

new segment, Kuiper. The Project Kuiper space-based internet Shejal Ajmera, Head of Research
system connects underserved places all around the world. Companies [email protected]
like SpaceX, with its Starlink technology, are putting up stiff
competition in this new "space race." Other initiatives include "walk www.crispidea.com
out" technology, international expansion, Amazon One, Amazon
Astro, and Amazon Glow.

Please see important disclosures on last page of report 1

CrispIdea | RESEARCH Amazon.com, Inc.

Highlights

Financial Summary Sep '21F Sep '21LTM Dec '19A Dec '20A Dec '21E Dec '22E Dec '23E 3-yr CAGR
Revenue 110,812 457,965 280,522 386,064 471,770 566,596 660,084 20%
Growth(%) -2.0 31.6 20.5 37.6 22.2 20.1 16.5
Gross Income 47,882 189,172 114,986 152,757 194,841 235,137 277,235 22%
Margin(%) 43.2 41.5 41.0 39.6 41.3 41.5 42.0
EBITDA 13,800 67,904 15,106 34,908 24,909 33,429 44,226 8%
Margin(%) 12.5 14.8 5.0 9.0 5.3 5.9 6.7
EBIT 4,852 35,792 14,541 34,399 24,438 32,863 43,566 8%
Margin(%) 4.4 7.8 5.0 6.0 5.2 5.8 6.6
Net Income 3,156 26,263 11,588 21,331 19,652 26,483 33,895 17%
Margin(%) 2.8 5.7 4.1 5.5 4.2 4.7 5.1
Capex 15,748 56,941 16,861 40,140 50,303 49,966 54,662 11%
% of Sales 14.2 12.4 6.0 10.4 10.7 9.0 8.4

We decrease our revenue estimate to 22.2% from 28% for FY21, as Estimates (Currency: Native)
reported in our previous report, due to an expected increase in
Period Sales (MIL) EBITDA (MIL) EPS
revenue between 4-11% Y/Y growth in Q4FY21 as compared with
FY0 (Actual) 386,064 34,908 41.83
Q4FY20. We maintain revenue growth of 20.1% and 16.5% for FY22 FY1 (Current Year) 471,770 24,909 38.16
and FY23, respectively. We estimate non-GAAP EPS of $38.16 and FY2 (Next Year) 566,596 33,429 51.12
$51.12 for FY21 and FY22, respectively. We expect non-GAAP EPS
growth of 34% for FY22.
Valuation Ratios
Period P/E P/SALES EV/REVS EV/EBITDA
In Q3FY21, gross margin increased to 43%, compared to 41% LTM 69.9x 4.0x 3.9x 26.5x
Q3FY20. Operating margin decreased to 4%, compared to 6% in FY1 (Current Yr) 87.1x 3.9x 3.8x 25.7x
Q3FY20. Net margin decreased to 3%, compared to 7% in Q3FY20. FY2 (Next Yr) 69.0x 3.3x 3.2x 20.7x

Balance Sheet: AMZN ended the quarter with cash and cash
FY0 Per Share Metrics (Currency: Native)
equivalents of $29.9bn, long-term debt of $65.9bn and total equity
Cash&STInv: 167.79 Sales: 756.99
of $120.6bn. Inventory turnover declined 12% to 3.58x, compared to
Total Debt: 101.45 Cash Flow: 74.56
4.05x in Q3FY20.
WorkingCap: 12.62 Free CF: 50.83
Book Value: 186.81 Dividends:
Guidance: For Q4FY21, Net sales are expected to be between
$130.0 billion and $140bn, or to grow between 4% and 12% $4,000 18,000

compared with Q4FY20. This guidance anticipates an unfavorable $3,500 16,000

impact of ~60bps from foreign exchange rates. Operating income is $3,000

14,000

12,000
$2,500

expected to be between $0 and $3.0bn, compared with $6.9bn in $2,000

10,000

Q4FY20.
8,000

$1,500
6,000

$1,000
4,000

$500 2,000

Stock Market Performance: Over the last 3 months, AMZN declined $0

28-10-2019 28-01-2020 28-04-2020 28-07-2020 28-10-2020 28-01-2021 28-04-2021 28-07-2021 28-10-2021
0

to 6.49%, against S&P 500 index performance of 0.11%. Over the Volume ('000) Closing Price 50 Day MA 200 Day MA

last 6 months, AMZN increased to 3.87%, against S&P 500 index

performance of 8.39%.

2
CrispIdea | RESEARCH Amazon.com, Inc.

Contents

• Highlights…………………………………………………………………...….…1
• Valuation
– Enterprise Value………………………………..……………………….………………..4
– CrispIdea Forecast.…………………………………………………..…..…….………..5
– Economic Value Added Analysis……….…………………………………………..6
– P/E Analysis………………………………….…………………………………..……….…7
– Peer Valuation..…..……………………………………………………………………….8
– CrispIdea Forecast Relative to Consensus……………………………………..9
– Consensus History and Surprise…………………………………………………..10
– Consensus Momentum………………………………………………………………..11
• Actual & Historical Performance
– Income Statement…………………………………………………………………………12
– Balance Sheet……………………………………………………………………………….13
– Cash Flow……………………………………………………………………………………..14
– 10 Year Historical Performance…………………………………….…………..…..15
– Ratio Analysis…………………………………………………..………………....………..16
– Du Pont Analysis…………………………………………………………………………….18
– ROIC & ROCE Analysis…………………………………………………………………….19
– Segment Performance………………………..…………………………………….......20
– Key Developments………………………………………………………………………….24
– M&A Deals……………………………………………………………………………………..26
• Peer Performance
– Summary…………………………………………………………………………………………27
– Profitability……………………………………………………………………………….......28
– Growth……………………………………………………………………………………….…..29
– Price Performance…………………………………………………………………………..30
• Ownership…………………………………………………………………………..31
• Stock Price Performance………………………………………….………….33
• CrispIdea Coverage……………………………………………………………..36

3
CrispIdea | RESEARCH Amazon.com, Inc.

Valuation

Enterprise Value
Last fiscal year Current
as of 31 Dec' 20 as of 22 Nov '21
Price in Native 3256.93 3572.57
x Shares Outstanding: 502 507
Equity Value: 16,34,168 18,11,820
As of Nov 22, 2021, the - Cash and ST Investments 84,396 78,988
company had a market cap - Equity Investments 3,200 4,400
of 1.8tn + Total Debt 51,031 66,862
+ Preferred Equity 0
+ Minority Interest
+ Pension Obligations
+ Other Adjustments
= Total Enterprise Value (TEV) 15,97,603 17,95,294
Source: Refinitiv; Native millions

• Enterprise value increased from $1.6tn on Dec 31, 2020, to $1.8tn on Nov 22, 2021, due to an increase in the
market cap

• Equity, as measured by market capitalization, was $1.8tn on Nov 22, 2021, which increased from $1.6tn on Dec
31, 2020. This was primarily due to an increase in market price

• On LTM basis, AMZN traded at EV/Revenue of 3.9x and EV/EBITDA of 26.4x

• P/E is 69.9x on LTM basis and is expected to be 87.1x for FY21 and 69x for both FY22 and FY23

Financial Valuation Ratios

12/2020A 09/2021LTM 12/2021E 12/2022E 12/2023E

TEV/Sales 4.1x 3.9x 3.8x 3.2x 2.8x
TEV/EBITDA 31.3x 26.4x 25.6x 20.7x 16.3x
TEV/EBIT 46.4x 50.2x 74.7x 54.3x 35.0x
EBITDA/Interest Expense 31.0x 39.0x 40.5x
EBIT/Interest Expense 20.9x 20.6x 13.9x 17.5x 26.1x
EBITDA-Capex/Interest Expense 6.7x 6.7x -15.2x -8.9x -1.7x
Total Debt/EBITDA 1.0x 1.0x - - -
Total Debt/EV 2.8x 3.7x - - -
PE 77.9x 69.9x 87.1x 69.0x 69.0x
TEV and Price as of Latest Available in Native ; Source: Refinitiv, IBES

4
CrispIdea | RESEARCH Amazon.com, Inc.

CrispIdea Forecast

All figures (except per share item) in Million Actuals (Annual) Forecasts (Annual)
Period End Date Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Fiscal Period FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Revenue 232,887 280,522 386,064 471,770 566,596 660,084
Y/Y Rev Growth 31.0% 20.0% 38.0% 22.2% 20.1% 16.5%
Cost of Revenue, Total 139,156 165,536 233,307 276,929 331,459 382,849
Gross Profit 93,731 114,986 152,757 194,841 235,137 277,235
Selling/General/Admin. Expenses, Total 52,177 64,313 87,193 116,150 139,949 163,701
Research & Development 28,837 35,931 42,740 54,254 62,326 69,969
Gross Margin 40.0% 41.0% 40.0% 41.3% 41.5% 42.0%
EBITDA 12,896 15,106 34,908 24,909 33,429 44,226
Y/Y EBITDA Growth 188.0% 17.0% 131.0% -28.6% 34.2% 32.3%
EBITDA Margin 6.0% 5.0% 9.0% 5.3% 5.9% 6.7%
Depreciation/Amortization 475 565 509 472 567 660
EBIT 12,421 14,541 34,399 24,438 32,863 43,566
Interest Expense(Income) - Net Operating -
Unusual Expense (Income) -
Other Operating Expenses, Total -179 -364 -584
Operating Income 12,421 14,541 22,899 24,438 32,863 43,566
Y/Y Op Income Growth -15.0% 17.0% 57.0% 6.7% 34.5% 32.6%
Op Margin 5.0% 5.0% 6.0% 5.2% 5.8% 6.6%
Interest Expense (Income), Net Non-Operating 977 557 224 472 567 660
Gain (Loss) on Sale of Assets -
Other, Net -183 -8 1,503
Income Before Tax 11,261 13,976 24,178 23,966 32,296 42,905
Tax 1,354 2,374 2,863 4,314 5,813 9,010
Income After Tax 9,907 11,602 21,315 19,652 26,483 33,895
Minority Interest -
Equity In Affiliates -1,417 -1,600 -1,647
Net Income Before Extra. Items 9,916 11,588 21,331 19,652 26,483 33,895
Accounting Change -
Discontinued Operations -
Extraordinary Item 157 - -
Net Income Incl Extra Before Distribution 10,073 11,588 21,331 19,652 26,483 33,895
Y/Y Net Income Growth 232.0% 15.0% 84.0% -7.9% 34.8% 28.0%
Net Margin 4.0% 4.0% 6.0% 4.2% 4.7% 5.1%

Diluted Weighted Average Shares 500 504 510 515 518 520
Diluted EPS Including Extraordinary Items 20.15 22.99 41.83 38.16 51.12 65.18
Y/Y Diluted EPS Including Extraordinary Items Growth 227% 14.0% 82.0% -9% 34% 27%
Tax rate 12% 17% 12% 18% 18% 21%

5
CrispIdea | RESEARCH Amazon.com, Inc.

Economic Value Added Analysis

Economic Value Added (Currency: Native)12-31-2020 12-31-2019 12-31-2018 12-31-2017 12-31-2016

Net Operating Profit After Tax 24,612 16,905 13,948 5,559 4,925
Cost of Capital 16,025 11,350 10,398 8,211 4,306
Annual EVA 8,587 5,555 3,550 -2,651 619
NOPAT Return on Adjusted Capital 13.8% 13.4% 12.0% 6.1% 10.3%
Return Hurdle (Weighted Average Cost of Capital)
9.0% 9.0% 9.0% 9.0% 9.0%
Value Added (Shortfall) 4.8% 4.4% 3.1% (2.9%) 1.3%

Annual EVA
Annual EVA
Economic profit is growing, 10,000 8,587
driven by robust 5,555
performance. The 5,000 3,550
619
pandemic -induced e-
0
commerce boom continued
to be a major tailwind for -5,000 -2,651
2016 2017 2018 2019 2020
the company, contributing
to accelerating revenues
and improving profit Value Added (Shortfall)
Value Added
margins (Shortfall) 6.0% 4.8%
4.4%
4.0% 3.1%

2.0% 1.3%

0.0%

(2.0%)

(4.0%) (2.9%)
2016 2017 2018 2019 2020

• Amazon has been steadily improving margins, due to robust performance.

AMZN’s EVA rise while its overall level of capital intensity has also risen

• NOPAT increased from $13.9bn in 2018 to $24.6bn in 2020, due to robust

performance in cloud and e-commerce

• Economic profit significantly increased from $3.6bn in 2018 to $8.6bn in 2020.

Also, the company’s cost of capital increased from $10.4bn in 2018 to $16bn
in 2020

6
CrispIdea | RESEARCH Amazon.com, Inc.

PE Chart and Comparison

450 4000

3572.…
400 3500

350
3000

300
2500
250 Trailing P/E
2000 Forward P/E
200
Price (P)
1500
150

1000
100
89.74
61.89 500
50

0 0
10-05-2016 22-09-2017 04-02-2019 18-06-2020 31-10-2021 15-03-2023

• Trailing P/E is 61.89x and forward P/E is 89.74x

We expect P/E of 81.18x for
• Over the last one year, the stock price increased to 5.06% and EPS increased to
FY22, higher than the
36%
consensus of 69x
• The stock price shows an increasing trend from $740.34 in Dec 2016, to
$3719.34 on July 09, 2021. It is currently trading at $3572.57 on Nov 26, 2021

7
CrispIdea | RESEARCH Amazon.com, Inc.

Peer Comparison - Valuation

Peer Valuation Company Name EV (Mn) EV/Sales FY1 EV/EBITDA FY1 P/E (FY0) P/E (FY1) P/E (FY2) PEG
AMZN.O Amazon.com Inc 1,795,294 4x 26x 78x 87x 69x 4x
COST.OQ Costco Wholesale Corp 234,260 1x 25x 40x 44x 40x 4x
TGT.N Target Corp 124,681 1x 11x 21x 18x 18x 1x
BKNG.OQ Booking Holdings Inc 93,197 9x 34x 1,798x 53x 23x 0x
ETSY.OQ ETSY Inc 36,850 16x 55x 65x 92x 80x 4x
BBY.N Best Buy Co Inc 30,970 1x 8x 16x 14x 15x 2x
ROKU.OQ Roku Inc 28,946 10x 64x 146x 143x 0x
DLTR.OQ Dollar Tree Inc 32,323 1x 13x 18x 24x 21x 3x
CHWY.N Chewy Inc 26,864 3x 135x 1,037x 214x 4x
W.N Wayfair Inc 27,684 2x 43x 121x 97x 120x
EXPE.OQ Expedia Group Inc 31,684 4x 23x 216x 25x 0x
VIAC.OQ ViacomCBS Inc 37,242 1x 8x 10x 9x 9x
PTON.OQ Peloton Interactive Inc 14,317 3x -32x
M.N Macy's Inc 13,578 1x 5x 7x 9x 0x
KSS.N Kohls Corp 10,890 1x 4x 8x 9x 0x
JWN.N Nordstrom Inc 7,498 1x 7x 22x 14x 0x
TRIP.OQ Tripadvisor Inc 4,109 4x 35x 22x
ASOS.L ASOS PLC 2,740 1x 9x 31x 25x 19x 5x
GRPN.OQ Groupon Inc 426 0x 3x 20x 9x 0x
SHLDQ.PK Sears Holdings Corp 5,028
Peer Median 27,274 1x 12x 31x 24x 21x 1x

• For FY21, EV/Sales is expected to be 4x, above the peer median of 1x

• For FY21, EV/EBITDA is expected to be 26x, above the peer median of 12x

• In FY20, P/E is 78x, above the peer median of 31x

• For FY21, P/E is expected to be 87x, above the peer median of 24x

• For FY22, P/E is expected to be 69x, above the peer median of 21x

• For FY21, closed peers – ETSY’s EV/EBITDA is expected to be 55x, above the AMZN’s EV/EBITDA

8
CrispIdea | RESEARCH Amazon.com, Inc.

CrispIdea Forecast Relative to Consensus

Growth Rates and Valuation Ratios

Growth Rates EPS Sales CI EPS CI Sales
FY1/FY0 -2.0% 21.9% -8.8% 22.2%
FY2/FY1 26.3% 17.7% 34.0% 20.1%
Our P/E and P/S forward FY3/FY2 49.1% 17.3% 27.5% 16.5%
multiples are above the
consensus Ratios P/E Price/Sales CI P/E CI Price/Sales
FY1 87.1 3.85 92.61 3.86
FY2 69.0 3.27 81.18 3.79
FY3 46.3 2.79 58.20 2.99

• For FY21, we expect revenue to increase by 22.2%, above the consensus

estimate of 21.9%. We expect a revenue growth of 20.1% for FY22, above
the consensus estimate of 17.7%. We expect revenue growth of 16.5% for
FY23, below the consensus estimate of 17.3%

• We expect a decline in EPS of 8.8% for FY21. We estimate a growth in EPS

of 34% and 27.5% for FY22 and FY23

• We expect P/E multiple of 92.61x for FY21, above the consensus estimate
of 87.1x. We estimate P/E multiple of 81.18x and 58.2x for FY22 and FY23

5 4500.00

4.5 4000.00

4
3500.00

3.5
3000.00 Strong Buy
3 Buy
2500.00
Hold
2.5
2000.00 Sell
2 Strong Sell
1500.00
1.5 Recommendation Mean
Close price
1000.00
1
Target Price

0.5 500.00

0 0.00
30-Oct-20

13-Nov-20

27-Nov-20

11-Dec-20

25-Dec-20

08-Jan-21

22-Jan-21

05-Feb-21

19-Feb-21

05-Mar-21

19-Mar-21

02-Apr-21

16-Apr-21

30-Apr-21

14-May-21

28-May-21

11-Jun-21

25-Jun-21

09-Jul-21

23-Jul-21

06-Aug-21

20-Aug-21

03-Sep-21

17-Sep-21

01-Oct-21

15-Oct-21

29-Oct-21

12-Nov-21

9
CrispIdea | RESEARCH Amazon.com, Inc.

Consensus History and Surprise

Period End Report Date Mean Actual % Surp SUE # Ests

30-09-2021 28-10-2021 8.92 6.12 -31.39 -1.60 41
30-06-2021 29-07-2021 12.30 15.12 22.91 2.07 39
31-03-2021 29-04-2021 9.54 15.79 65.48 4.88 38
31-12-2020 02-02-2021 7.23 14.09 94.85 5.35 43
30-09-2020 29-10-2020 7.41 12.37 66.95 3.72 43
30-06-2020 30-07-2020 1.46 10.30 605.27 7.34 44
31-03-2020 30-04-2020 6.25 5.01 -19.83 -2.01 45
31-12-2019 30-01-2020 4.03 6.47 60.61 4.18 46
30-09-2019 24-10-2019 4.62 4.23 -8.43 -0.65 46
30-06-2019 25-07-2019 5.57 5.22 -6.27 -0.53 44
31-03-2019 25-04-2019 4.72 7.09 50.11 4.23 43
31-12-2018 31-01-2019 5.68 6.04 6.34 0.47 46
30-09-2018 25-10-2018 3.14 5.75 82.98 5.68 43
30-06-2018 26-07-2018 2.54 5.07 99.84 6.64 43
31-03-2018 26-04-2018 1.26 3.27 159.66 8.70 43
31-12-2017 01-02-2018 1.84 2.16 17.33 1.16 43
30-09-2017 26-10-2017 0.03 0.52 1659.73 3.01 41
30-06-2017 27-07-2017 1.42 0.40 -71.81 -4.27 37
31-03-2017 27-04-2017 1.08 1.48 36.45 1.53 39
31-12-2016 02-02-2017 1.35 1.54 14.34 0.64 40

• In Q3FY21, the company delivered an earnings surprise of -31.39%. EPS came in

at $6.12, below the mean EPS estimate of $8.92
Over the last four quarters,
the company has surpassed • In Q2FY21, the company delivered an earnings surprise of 22.91%. EPS came in
consensus EPS estimates at $15.12, above the mean EPS estimate of $12.30
three times
• In Q1FY21, the company delivered an earnings surprise of 65.48%. EPS came in
at $15.79, above the mean EPS estimate of $9.54

10
CrispIdea | RESEARCH Amazon.com, Inc.

Consensus Momentum

Current Year(FY1)
53.71 55.74 55.83
60.00 53.26 53.14 52.82
47.63 47.59
43.13
40.00 34.87 34.90 34.98

EPS
20.00

0.00
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21

We expect 8.8% decline in

Next Year(FY2)
GAAP EPS for FY21, below
80.00 72.09 72.25
the consensus. We expect 66.27 66.08 70.48 67.26 66.52 66.41
54.31
EPS growth of 34% for FY22 60.00 45.37 45.41 45.64
EPS

and project growth of 40.00

27.5% for FY23, 20.00

respectively 0.00
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21

Long Term Growth

39.00% 38.40%
37.93% 37.93%
38.00%
EPS % Growth

37.20% 37.20%
37.00% 36.35% 36.35% 36.43%
35.77% 35.77% 35.77% 36.00%
36.00%
35.00%
34.00%
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21

• For FY21, AMZN’s consensus EPS estimate increased to $43.13 in Nov 2021 from
$34.87 in Dec 2020

• Similarly, consensus sentiment in the company’s earnings increased for FY22 as

well. EPS estimates for FY22 increased to $54.31 in Nov 2021 from $45.37 in Dec
2020

• Consensus long-term sentiments for EPS growth decreased from 36.35% in Dec
2020 to 36% in Nov 2021

11
CrispIdea | RESEARCH Amazon.com, Inc.

Income Statement

All figures (except per share item) in Million Actuals (Annual) Actuals (Quarterly)
Period End Date Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20
Fiscal Period FY2020 FY2019 FY2018 FY2017 FY2016 FY2021Q3 FY2021Q2 FY2021Q1 FY2020Q4 FY2020Q3

Revenue 386,064.00 280,522.00 232,887.00 177,866.00 135,987.00 110,812.00 113,080.00 108,518.00 125,555.00 96,145.00
Y/Y Rev Growth 38% 20% 31% 31% 15% 4% -14% 31%
Cost of Revenue, Total 233,307 165,536 139,156 111,934 88,265 62,930 64,176 62,403 79,284 57,106
Gross Profit 152,757 114,986 93,731 65,932 47,722 47,882 48,904 46,115 46,271 39,039
Selling/General/Admin. Expenses, Total 87,193 64,313 52,177 38,992 27,284 28,661 27,320 24,724 27,845 21,807
Research & Development 42,740 35,931 28,837 22,620 16,085 14,380 13,871 12,488 12,049 10,976
Gross Margin 40% 41% 40% 37% 35% 43% 43% 42% 37% 41%
EBITDA 34,908 15,106 12,896 4,472 4,473 4,852 9,202 10,865 10,873 9,694
Y/Y EBITDA Growth 131% 17% 188% 0% -47% -15% 0% 12%
EBITDA Margin 9% 5% 6% 3% 3% 4% 8% 10% 9% 10%
Depreciation/Amortization 509 565 475 366 287
EBIT 34,399 14,541 12,421 4,106 4,186 4,852 9,202 10,865 10,873 9,694
Interest Expense(Income) - Net Operating - -
Unusual Expense (Income) - -
Other Operating Expenses, Total -584 -364 -179 -152 -120 -11 11 38 -496 62
Operating Income 22,899 14,541 12,421 4,106 4,186 4,852 7,702 8,865 6,873 6,194
Y/Y Op Income Growth 57% 17% -15% -67% 2% -37.00% 59% 15% -22% -10%
Op Margin 6% 5% 5% 2% 3% 4% 7% 8% 5% 6%
Interest Expense (Income), Net Non-Operating 224 557 977 406 371 610 62 401 -168 160
Gain (Loss) on Sale of Assets - -
Other, Net 1,503 -8 -183 106 77 73 994 1,804 724 775
Income Before Tax 24,178 13,976 11,261 3,806 3,892 4,315 8,634 10,268 7,765 6,809
Tax 2,863 2,374 1,354 1,558 1,425 1,155 868 2,156 565 569
Income After Tax 21,315 11,602 9,907 2,248 2,467 3,160 7,766 8,112 7,200 6,240
Minority Interest - -
Equity In Affiliates -1,647 -1,600 -1,417 -848 -484 -493 -435 -399 -414 -428
Net Income Before Extra. Items 21,331 11,588 9,916 2,244 2,371 3,156 7,778 8,107 7,222 6,331
Accounting Change - -
Discontinued Operations - -
Extraordinary Item - - 157 789 - - - - - -
Net Income Incl Extra Before Distribution 21,331 11,588 10,073 3,033 2,371 3,156 7,778 8,107 7,222 6,331
Y/Y Net Income Growth 84% 15% 232% 28% -59% -4% 12% 14%
Net Margin 6% 4% 4% 2% 2% 3% 7% 7% 6% 7%

Basic Weighted Average Shares 500 494 487 480 474 507 505 504 500 501
Basic EPS Including Extraordinary Items 42.66 23.46 20.68 6.32 5.00 6.22 15.40 16.09 14.44 12.64
Y/Y Basic EPS Including Extraordinary Items Growth 82% 13% 227% 26% -60% -4% 11% 14%
Diluted Weighted Average Shares 510 504 500 493 484 515 514 513 513 512
Diluted EPS Including Extraordinary Items 41.83 22.99 20.15 6.15 4.90 6.13 15.13 15.80 14.08 12.37
Y/Y Diluted EPS Including Extraordinary Items Growth 82% 14% 227% 26% -60% -4% 12% 14%
Dividends per Share - Common Stock Primary Issue - - - - - - - - - -
Normalized Income After Taxes 31,453.25 11,602.00 9,907.00 2,248.00 2,467.00 3,160.00 9,115.20 9,692.05 10,908.95 9,447.52
Basic Normalized EPS 62.94 23.46 20.36 4.68 5.00 6.22 18.07 19.22 21.86 19.04
Diluted Normalized EPS 61.70 22.99 19.83 4.55 4.90 6.13 17.76 18.88 21.31 18.63

• In Q3FY21, net revenues increased 15% to $110.8bn, compared to $96.1bn in Q3FY20. It excludes $0.5bn
favorable impact from Y/Y changes in foreign exchange rates throughout the quarter, net sales increased 15% Y/Y

• In Q3FY21, Operating income decreased 22% to $4.9bn, compared to $6.2bn in Q3FY20. Net income decreased
50% to $3.2bn, or $6.13 per diluted share, compared to $6.3bn , or $12.37 per diluted share, in Q3FY20

• YTD: Net revenues increased 28% to $332.4bn, compared to $260.5bn in prior nine-months period. Changes in
foreign currency exchange rates impacted net sales by $5.1bn in prior nine-months period. Operating income
increased 34% to $21.4bn, compared to $16bn in prior nine-months period. Net income increased 35% to $19bn,
or $37.02 per diluted share, compared to $14.1bn , or $27.72 per diluted share in prior nine-months period

12
CrispIdea | RESEARCH Amazon.com, Inc.

Balance Sheet

Period End Date Actuals (Annual) Actuals (Quarterly)

Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20
Fiscal Period
FY2020 FY2019 FY2018 FY2017 FY2016 FY2021Q3 FY2021Q2 FY2021Q1 FY2020Q4 FY2020Q3
Cash and Short Term Investments 84,396 55,021 41,250 30,986 25,981 78,988 89,894 73,270 84,396 68,402
Total Receivables, Net 24,309 20,540 16,677 13,164 8,339 28,610 26,835 24,289 24,309 20,593
Total Inventory 23,795 20,497 17,174 16,047 11,461 30,933 24,119 23,849 23,795 23,735
Prepaid Expenses - -
Other Current Assets, Total 233 276 - - - - - - 233 239
Total Current Assets 1,32,733 96,334 75,101 60,197 45,781 1,38,531 1,40,848 1,21,408 1,32,733 1,12,969
Property/Plant/Equipment, Total - Net 1,50,667 97,846 61,797 48,866 29,114 1,99,303 1,76,848 1,60,789 1,50,667 1,34,100
Goodwill, Net 15,017 14,754 14,548 13,350 3,784 15,345 15,350 15,220 15,017 14,960
Intangibles, Net 4,981 4,049 4,110 3,371 854 -
Long Term Investments 3,200 679 518 415 242 4,400 4,700 2,900 3,200 1,600
Note Receivables LT - -
Other Long Term Assets, Total 14,597 11,586 6,574 5,111 3,627 24,827 22,573 22,760 19,578 18,550
Total Assets 3,21,195 2,25,248 1,62,648 1,31,310 83,402 3,82,406 3,60,319 3,23,077 3,21,195 2,82,179
Accounts Payable 72,539 47,183 38,192 34,616 25,309 71,474 66,090 63,926 72,539 58,334
Accrued Expenses 42,983 31,132 14,161 11,949 8,542 40,546 39,849 39,783 42,983 34,172
Notes Payable/Short Term Debt - - - - - - - - - -
Current Port. of LT Debt/Capital Leases 1,155 1,307 9,502 6,221 5,197 1,000 1,158 1,156 1,155 155
Other Current liabilities, Total 9,708 8,190 6,536 5,097 4,768 10,974 10,695 10,539 9,708 9,251
Total Current Liabilities 1,26,385 87,812 68,391 57,883 43,816 1,23,994 1,17,792 1,15,404 1,26,385 1,01,912
Total Long Term Debt 49,876 40,509 39,787 37,926 15,213 65,862 66,507 48,798 49,876 50,419
Total Debt 51,031 41,816 49,289 44,147 20,410 66,862 67,665 49,954 51,031 50,574
Deferred Income Tax - - 1,490 990 392 -
Minority Interest - -
Other Liabilities, Total 51,530 34,867 9,431 6,802 4,696 71,986 61,217 55,555 51,530 47,073
Total Liabilities 2,27,791 1,63,188 1,19,099 1,03,601 64,117 2,61,842 2,45,516 2,19,757 2,27,791 1,99,404
Redeemable Preferred Stock, Total - -
Preferred Stock - Non Redeemable, Net - - - - - - - - - -
Common Stock, Total 5 5 5 5 5 5 5 5 5 5
Additional Paid-In Capital 42,865 33,658 26,791 21,389 17,186 51,879 48,724 45,160 42,865 40,307
Retained Earnings (Accumulated Deficit) 52,551 31,220 19,625 8,636 4,916 71,592 68,436 60,658 52,551 45,329
Treasury Stock - Common -1,837 -1,837 -1,837 -1,837 -1,837 -1,837 -1,837 -1,837 -1,837 -1,837
Other Equity, Total -180 -986 -1,035 -468 -1,001 -1,075 -525 -666 -180 -1,029
Total Equity 93,404 62,060 43,549 27,709 19,285 1,20,564 1,14,803 1,03,320 93,404 82,775
Total Liabilities & Shareholders' Equity 3,21,195 2,25,248 1,62,648 1,31,310 83,402 3,82,406 3,60,319 3,23,077 3,21,195 2,82,179

• As of Sep 30, 2021, cash and short-term investment increased 15% to $78.9bn, compared to $68.4bn as
of Sep 30, 2020

• In Q3FY21, long-term debt increased 31% to $65.9bn, compared to $50.4bn in Q3FY20

• In Q3FY21, total equity increased 46% to $120.6bn, compared to $82.8bn in Q3FY20

• In Q3FY21, current liabilities was $123.9bn, company will be able to meet these obligations given the
level of current assets of $138.5bn, with a current ratio of 1.12x

Source: Refinitiv 13
CrispIdea | RESEARCH Amazon.com, Inc.

Cash Flow

Cash Flow Actuals (Annual) Actuals (Quarterly)

Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20
Fiscal Period
FY2020 FY2019 FY2018 FY2017 FY2016 FY2021Q3 FY2021Q2 FY2021Q1 FY2020Q4 FY2020Q3
Net Income/Starting Line 21,331 11,588 10,073 3,033 2,371 19,041 15,885 8,107 21,331 14,109
Depreciation/Depletion 25,251 21,789 15,341 11,478 8,116 24,494 15,546 7,508 25,251 17,633
Amortization - -
Deferred Taxes -554 796 441 -29 -246 3,313 2,404 1,703 -554 1,082
Non-Cash Items 6,555 6,779 5,911 4,125 3,115 6,775 3,231 880 6,555 5,807
Changes in Working Capital 13,481 -2,438 -1,043 -242 3,847 -29,382 -20,138 -13,985 13,481 -2,998
Cash from Operating Activities 66,064 38,514 30,723 18,365 17,203 24,241 16,928 4,213 66,064 35,633
Capital Expenditure -40,140 -16,861 -13,427 -11,955 -7,804 -42,118 -26,370 -12,082 -40,140 -25,317
Acquisition of business -2,325 -2,461 -2,186 -13,972 -116 -1,604 -950 -630 -2,325 -1,945
Other Investing Cash Flow Items. Total -17,146 -4,959 3,244 -1,157 -1,596 -1,852 -3,426 4,046 -17,146 -15,312
Cash from Investing Activities -59,611 -24,281 -12,369 -27,084 -9,516 -45,574 -30,746 -8,666 -59,611 -42,574
Total Cash Dividends Paid - -
Issuance (retirement) of stock, net - -
Issurance (retirement) of debt, net -1,104 -10,066 -7,686 9,928 -3,716 9,391 12,167 -3,476 -1,104 712
Other Financing - -
Cash from Financing Activity -1,104 -10,066 -7,686 9,928 -3,716 9,391 12,167 -3,476 -1,104 712
FX 618 70 -351 713 -212 -258 -59 -293 618 21
Net Change in Cash 5,967 4,237 10,317 1,922 3,759 -12,200 -1,710 -8,222 5,967 -6,208

• Operating cash flow decreased 1% to $54.7bn for the trailing twelve months, compared to $55.3bn for the trailing
twelve months ended Sep 30, 2020

• Investing cash outflow was $62.6bn for the trailing twelve months, compared to $46.1bn for the trailing twelve
months ended Sep 30, 2020

• Financing cash inflow was $7.6bn for the trailing twelve months, compared to an outflow of $2.9bn for the trailing
twelve months ended Sep 30, 2020

• Free cash flow decreased to $2.6bn for the trailing twelve months, compared to $29.5bn for the trailing twelve
months ended Sep 30, 2020

14
CrispIdea | RESEARCH Amazon.com, Inc.

Common Size Ratio Analysis

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Ratio Analysis TTM
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
or MRQ
Margins and Profitability
COGS (% of Sales) 77.6% 75.2% 72.8% 70.5% 67.0% 64.9% 62.9% 59.8% 59.0% 60.4% 58.7%
Gross Profit Margin 22.4% 24.8% 27.2% 29.5% 33.0% 35.1% 37.1% 40.2% 41.0% 39.6% 41.3%
SG&A (% of Sales) 14.3% 15.9% 17.3% 18.7% 19.1% 20.1% 21.9% 22.4% 22.9% 22.6% 23.7%
R&D (% of Sales) 6.1% 7.5% 8.8% 10.4% 11.7% 11.8% 12.7% 12.4% 12.8% 11.1% 11.5%
Tax Rate 31.2% 78.7% 31.8% - 60.6% 36.6% 40.9% 12.0% 17.0% 11.8% 15.3%
Gross Profit Margin 22.4% 24.8% 27.2% 29.5% 33.0% 35.1% 37.1% 40.2% 41.0% 39.6% 41.3%
EBIT Margin 1.8% 1.1% 1.0% 0.2% 2.1% 3.1% 2.3% 5.3% 5.2% 8.9% 7.8%
EBITDA Margin 1.8% 1.1% 1.2% 0.4% 2.3% 3.3% 2.5% 5.5% 5.4% 9.0% 7.8%
Operating Margin 1.8% 1.1% 1.0% 0.2% 2.1% 3.1% 2.3% 5.3% 5.2% 5.9% 6.2%
Net Profit Margin 1.3% -0.1% 0.4% -0.3% 0.6% 1.7% 1.3% 4.3% 4.1% 5.5% 5.7%

Turnover Ratio
ROIC - - - -0.8% 70.8% 237.6% 11.9% 31.8% 40.0% 49.1% -
Return on Assets 2.9% -0.1% 0.8% -0.5% 1.0% 3.2% 2.1% 6.9% 6.0% 7.8% -
Financial Leverage (Average) 3.26 3.97 4.12 5.07 4.84 4.32 4.74 3.73 3.63 3.44 3.21
Return on Equity 8.6% -0.5% 3.1% -2.4% 4.9% 14.5% 9.6% 28.3% 22.0% 27.4% -

Capital Structure & Coverage

Cap Ex as a % of Sales -3.8% -6.2% -4.6% -5.5% -5.0% -5.7% -6.7% -5.8% -6.0% -10.4% -12.4%
Free Cash Flow/Sales 0.0% -3.0% -0.6% -1.6% 0.3% 1.0% -4.0% 3.9% 3.7% -0.5% 0.3%
Free Cash Flow/Net Income -3.0% 4630.8% -157.3% 576.8% 60.2% 56.9% -231.8% 90.3% 90.2% -9.9% 5.4%
Net Debt / EBITDA - - - - - 0.05 1.40 0.69 - - -
Net Debt / Total Equity -105% -93% -57% -12% -19% -29% 47% 18% -21% -36% -21.1%
Net Debt / EV - - - - - 0.17 3.24 2.32 - - -
EBIT / Net Interest - - - - - - - - - 1439.0 21.1

Growth in %
Revenue Growth 40.6 27.1 21.9 19.5 20.2 27.1 30.8 30.9 20.5 37.6 31.6
EBIT Growth -38.7 -21.6 10.2 -76.1 1154.5 87.5 -1.9 202.5 17.1 136.6 30.6
EPS Growth -45.8 -106.3 784.5 -188.5 339.5 292.1 -7.1 335.7 15.9 168.4 36.3
Op Cash Flow Growth 11.7 7.1 31.0 25.0 76.0 42.9 6.8 67.3 25.4 71.5 -18.7
FCF Growth 348.0 88.7 -79.6 927.7 -77.4 182.0 -48.9 436.8 -58.9 40.8 -100.4

Enterprise Value
Marketcap (USD Mn) 78,718 1,13,895 1,83,045 1,44,313 3,16,832 3,56,313 5,63,535 7,34,416 9,16,154 16,34,168 18,11,820
Net Debt (cash) (USD Mn) (8,161) (7,618) (5,530) (1,327) (2,534) (5,571) 13,161 8,039 (13,205) (33,365) (22,759)
Total Enterprise Value 72,392 1,08,647 1,78,399 1,40,529 3,10,647 3,56,906 5,82,411 7,51,870 9,12,592 16,16,340 17,99,694

Valuation
P/E (diluted) 91.2 3353.0 1411.9 - 980.5 171.8 297.3 92.4 82.9 95.4 69.9
EV/Revenue - 3.9
EV/EBITDA - 2.1 0.7 19.9 73.8 15.2 17.8 26.5
EV/EBIT 67.3 204.6 278.7 1448.8 181.0 88.3 180.0 69.9 63.2 59.0 50.3
P/BV 10.1 15.0 20.1 13.9 25.5 20.0 22.9 18.8 16.2 19.8 14.9

Source: Refinitiv 15
CrispIdea | RESEARCH Amazon.com, Inc.

Historical Ratios – Profitability Historical Ratios – Cost Drivers

Gross Margin COGS (as % of Sales)

41.0% 41.3% 64.9%
40.2%
39.6% 62.9%

37.1% 60.4%
59.8%
35.1% 59.0% 58.7%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM FY2016 FY2017 FY2018 FY2019 FY2020 TTM
or MRQ or MRQ

Operating Margin SG&A as % of Sales

23.7%

5.3% 5.9% 6.2% 22.9%

22.4% 22.6%
5.2%
21.9%

3.1% 2.3%
20.1%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM

or MRQ FY2016 FY2017 FY2018 FY2019 FY2020 TTM
or MRQ

Net Margin R&D as % of Sales

12.7% 12.8%
5.5% 5.7% 12.4%
4.1%
4.3% 11.8%
11.5%
11.1%
1.7%
1.3%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM FY2016 FY2017 FY2018 FY2019 FY2020 TTM
or MRQ or MRQ

• In Q3FY21, gross margin increased to 43%, compared to 41% in Q3FY20. On TTM basis, gross margin is 41.3%. COGS
as a % of sales decreased to 57%, compared to 59% in Q3FY20. On TTM basis, COGS as a % of sales is 58.7%

• In Q3FY21, operating margin decreased to 4%, compared to 6% in Q3FY20. On TTM basis, operating margin is 6.2%.
SG&A as a % of sales increased to 26%, compared to 23% in Q3FY20. On TTM basis, SG&A as a % of sales is 23.7%

• In Q3FY21, net margin decreased to 3%, compared to 7% in Q3FY20. On TTM basis, net margin is 5.7%. R&D as a %
of sales increased to 13%, compared to 11% in Q3FY20. On TTM basis, R&D as a % of sales is 11.5%

Source: Refinitiv 16
CrispIdea | RESEARCH Amazon.com, Inc.

Growth Ratios Return Ratios

Revenue Growth YoY Return on Assets

38%
31% 7.8%
31% 32% 6.9%
27% 6.0%
20%
3.2%
2.1%

0.0%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM FY2016 FY2017 FY2018 FY2019 FY2020 TTM
or MRQ or MRQ

Operating Income Growth YoY Financial Leverage

4.7
4.3
203%
3.7 3.6 3.4
3.2
137%

87%

31%
17%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM FY2016 FY2017 FY2018 FY2019 FY2020 TTM
-2% or MRQ or MRQ

EPS Growth YoY Return on Equity

336% 28.3% 27.4%
292% 22.0%

14.5%
168%
9.6%

36%
16% 0.0%

FY2016 FY2017 FY2018 FY2019 FY2020 TTM

FY2016 -7%
FY2017 FY2018 FY2019 FY2020 TTM
or MRQ
or MRQ

• In Q3FY21, revenue increased 15% Y/Y, due to the growth in AWS segment. On TTM basis, the revenue is 32%

• In Q3FY21, operating income declined 22% Y/Y. EPS declined 50% Y/Y. On TTM basis, the operating income and
EPS is 31% and 36%, respectively

• In FY20, ROA and ROE increase to 7.8% and 27.4%, respectively

• In FY20, financial leverage was 3.4x. On TTM basis, the financial leverage is 3.2x

Source: Refinitiv 17
CrispIdea | RESEARCH Amazon.com, Inc.

Du Pont Analysis
DuPont Analysis
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tax Burden 67.6% -7.2% 54.2% 217.1% 38.0% 60.9% 59.0% 88.1% 82.9% 88.2%
Growth (bps) -940bps -7473bps 6132bps 16297bps -17911bps 2291bps -196bps 2910bps -514bps 531bps
Interest Burden 108.4% 80.5% 67.9% -62.4% 70.2% 93.0% 92.7% 90.7% 96.1% 70.3%
Growth (bps) 188bps -2788bps -1255bps -13028bps 13258bps 2276bps -28bps -203bps 545bps -2583bps
EBIT Margin 1.8% 1.1% 1.0% 0.2% 2.1% 3.1% 2.3% 5.3% 5.2% 8.9%
Growth (bps) -232bps -69bps -11bps -80bps 189bps 99bps -77bps 303bps -15bps 373bps
Asset Turnover 2.18x 2.11x 2.05x 1.88x 1.79x 1.84x 1.66x 1.58x 1.45x 1.41x
Growth (bps) 838bps -689bps -649bps -1677bps -855bps 412bps -1790bps -723bps -1381bps -334bps
Leverage Factor 3.01x 3.63x 4.05x 4.62x 4.94x 4.53x 4.57x 4.13x 3.67x 3.51x
Growth (bps) 3241bps 6116bps 4275bps 5671bps 3224bps -4082bps 341bps -4437bps -4523bps -1580bps

Return on Equity 8.63% -0.49% 3.05% -2.35% 4.94% 14.52% 9.55% 27.83% 21.95% 27.44%
Growth (bps) -1038bps -912bps 354bps -541bps 729bps 957bps -497bps 1828bps -589bps 550bps

• DuPont Analysis: AMZN’s ROE increased from FY11 to FY20 with volatility. It increased to 27.44% in FY20 from
8.63% in FY11 and 21.95% in FY19. This was primarily due to increase in EBIT Margin

• EBIT margin of the company increased over the period of last ten years. It increased to 8.9% in FY20 from 1.8% in
FY11 and 5.2% in FY19

• Asset turnover ratio of the company decreased over the period of last ten years. It decreased to 1.41x in FY20
from 2.18x in FY11 and 1.45x in FY19

• Leverage factor of the company increased over the period of last ten years. It increased to 3.51x in FY20 from
3.01x in FY11 and 3.67x in FY19

30.0% 6.00x
27.44%

25.0%
5.00x

20.0%
4.00x

3.51x
15.0%

3.00x

10.0%
8.9%
2.00x
5.0%
1.41x

1.00x
0.0%
1 2 3 4 5 6 7 8 9 10

-5.0% 0.00x

EBIT Margin Return on Equity Asset Turnover Leverage Factor

18
CrispIdea | RESEARCH Amazon.com, Inc.

ROIC & ROCE Analysis

FY-10 FY-9 FY-8 FY-7 FY-6 FY-5 FY-4 FY-3 FY-2 FY-1 FY0
ROIC 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
253.06 9.90 14.86 2.59 8.78 21.52 8.65 22.90 17.83 31.45

FY-10 FY-9 FY-8 FY-7 FY-6 FY-5 FY-4 FY-3 FY-2 FY-1 FY0
ROCE 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
6.31 1.20 3.31 0.82 3.07 7.53 4.29 13.03 10.42 18.25

300.00

250.00

200.00

150.00

100.00

50.00 31.45

18.25
0.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ROIC ROCE

• Between 2016-2020, AMZN’s ROIC average was 20.47%. The company’s ROIC was 17.83% in 2019 as compared
to 31.45% in 2020

• Between 2016-2020, ROCE average was 10.71%. AMZN’s ROCE was 10.42% in 2019 as compared to 18.25% in
2020

19
CrispIdea | RESEARCH Amazon.com, Inc.

Segment Performance – Geography

Q3FY21 Results Overview:

• North America revenues: In Q3FY21, revenue from North America increased 10% to
$65.6bn, compared to $59.4bn in Q3FY20. Operating income decreased 61% to
$880mn, compared to $2.3bn in Q3FY20

• International revenues: In Q3FY21, revenue from International increased 16% to

$29.1bn, compared to $25.2bn in Q3FY20. Operating loss was $911mn, compared
to an income of $407mn in Q3FY20

• Amazon Web Services revenues: In Q3FY21, revenue from AWS increased 39% to
$16.1bn, compared to $11.6bn in Q3FY20. Operating income increased 38% to
$4.9bn, compared to $3.5bn in Q3FY20

• Product sales (49.5% of sales) increased 4% Y/Y to $54.9bn. Service sales (50.5% of
sales) rose 29% Y/Y to $55.9bn

Period End Date Actuals (Annual) Actuals (Quarterly)

In Q3FY21, revenue from Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20
Fiscal Period
AWS increased 39% Y/Y FY2020 FY2019 FY2018 FY2017 FY2016 FY2021Q3 FY2021Q2 FY2021Q1 FY2020Q4 FY2020Q3
North America 2,36,282 1,70,773 1,41,366 1,06,110 79,785 65,557 67,550 64,366 75,346 59,373
International 1,04,412 74,723 65,866 54,297 43,983 29,145 30,721 30,649 37,467 25,171
AWS 45,370 35,026 25,655 17,459 12,219 16,110 14,809 13,503 12,742 11,601

Source: Company Website, Crispidea Analysis

20
CrispIdea | RESEARCH Amazon.com, Inc.

Segment Performance – Geography

YTD Results Overview:

• North America revenues: On YTD basis, revenue from North America increased 23%
to $197.5bn, compared to $160.9bn in prior nine-months period. Operating income
increased 31% to $7.5bn, compared to $5.7bn in prior nine-months period

• International revenues: On YTD basis, revenue from International increased 35% to

$90.5bn, compared to $66.9bn in prior nine-months period. Operating income
increased 98% to $703mn, compared to $355mn in prior nine-months period

• Amazon Web Services revenues: On YTD basis, revenue from AWS increased 36%
to $44.4bn, compared to $32.6bn in prior nine-months period. Operating income
increased 33% to $13.2bn, compared to $9.9bn in prior nine-months period

• Product sales (51.3% of sales) increased 18% Y/Y to $170.4bn. Service sales (48.7%
of sales) increased 40% Y/Y to $162bn

Period End Date Actuals (Nine-months)

On YTD basis, revenue
Fiscal Period Sep-21 Sep-20 % Change
from AWS increased 36%
Y/Y North America 197,473 160,936 22.70%
International 90,515 66,945 35.2%
AWS 44,422 32,628 36.1%
Consolidated 332,410 260,509 27.6%

Source: Company Website, Crispidea Analysis

21
CrispIdea | RESEARCH Amazon.com, Inc.

Segment Performance - Business

Q3FY21 Results Overview:

• AWS: In Q3FY21, revenue from AWS increased 39% to $16.1bn, compared to

$11.6bn in Q3FY20

• Online Stores: In Q3FY21, revenue from Online Stores increased 3% to $49.9bn,

In Q3FY21, revenue from compared to $48.4bn in Q3FY20
AWS increased 39% Y/Y
• Physical Stores: In Q3FY21, revenue from Physical Stores increased 13% to $4.3bn,
compared to $3.8bn in Q3FY20

• Subscription Services: In Q3FY21, revenue from Subscription Services increased 23%

to $8.1bn, compared to $6.6bn in Q3FY20

• Third-Party Seller Services: In Q3FY21, revenue from Third-party seller services

increased 19% to $24.3bn, compared to $20.4bn in Q3FY20

Period End Date Actuals (Annual) Actuals (Quarterly)

Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20
Fiscal Period
FY2020 FY2019 FY2018 FY2017 FY2016 FY2021Q3 FY2021Q2 FY2021Q1 FY2020Q4 FY2020Q3
Amazon Web Services 45,370 35,026 25,655 17,459 12,219 16,110 14,809 13,503 12,742 11,601
In Q3FY21, revenue from Online Stores 1,97,346 1,41,247 1,22,987 1,08,354 49,942 53,157 52,901 66,447 48,350
Subscription Services Physical Stores 16,227 17,192 17,224 5,798 4,269 4,198 3,920 4,026 3,788
increased 23% Y/Y Subscription Services 25207 19210 14168 9721 8148 7917 7580 7061 6572
Third Party Seller Services 80461 53762 42745 31881 24252 25085 23709 27340 20436
Other 21453 14085 10108 4653 8091 7914 6905 7939 5398

Source: Company Website, Crispidea Analysis

22
CrispIdea | RESEARCH Amazon.com, Inc.

Segment Performance - Business

YTD Results Overview:

• Online Stores: On YTD basis , revenue from Online Stores increased 19.2% to
$156bn, compared to $130.9bn in prior nine-months period

• Physical Stores: On YTD basis, revenue from Physical Stores increased 1.5% to
On YTD basis, revenue $12.4bn, compared to $12.2bn in prior nine-months period
from Third-party seller
services increased 37.5% • Third-Party Seller Services: On YTD basis, revenue from Third-party seller services
Y/Y increased 37.5% to $73bn, compared to $53bn in prior nine-months period

• Subscription Services: On YTD basis, revenue from Subscription Services increased

30.3% to $23.6bn, compared to $18.1bn in prior nine-months period

• AWS: On YTD basis, revenue from AWS increased 36.1% to $44.4bn, compared to
$32.6bn in prior nine-months period

• Other: On YTD basis, revenue from Other increased 70% to $22.9bn, compared to
$13.5bn in prior nine-months period

Period End Date Actuals (Nine-months)

Fiscal Period Sep-21 Sep-20 % change
Online stores 156,000 130,899 19.2%
On YTD basis, revenue Physical stores 12,387 12,201 1.5%
from Subscription Third-party seller services 73,046 53,121 37.5%
Services increased 30.3% Subscription services 23,645 18,146 30.3%
Y/Y
AWS 44,422 32,628 36.1%
Other 22,910 13,514 69.5%
Consolidated 332,410 260,509 27.6%

Source: Company Website, Crispidea Analysis

23
CrispIdea | RESEARCH Amazon.com, Inc.

Key Developments
Shopping

• Amazon kicked off the holidays early this year, announcing Black Friday-worthy
deals on Oct 04

• Amazon’s Great Indian Festival sales event, which started on October 3, features
more than 75,000 small businesses selling on Amazon from 450 cities across India,
Amazon’s Great Indian
and provides customers access to a unique selection of products. The event also
Festival sales event,
includes more than 1,000 new product launches from top brands like Apple,
features more than
Maybelline, and Samsung.
75,000 small businesses
selling on Amazon from
• Amazon launched Amazon.eg in Egypt. The new store, formerly known as Souq.com
450 cities across India,
and provides customers
Entertainment
access to a unique
selection of products.
• Prime continued to expand and provide even more value to members around the
world. The program is now available to customers in Sweden and Poland, offering
free and fast delivery on millions of items

• Amazon Games launched New World, a multiplayer online PC game. New World
became the highest-played new game this year on Steam, a widely used distribution
platform where players find, buy, and play games on PC

• Prime Video announced that The Lord of the Rings series will premiere September 2,
2022, on the streaming service, and an untitled spinoff will be produced for the
popular series The Boys. In the fourth quarter, Amazon Original Movies The Tender
Bar, starring Ben Affleck and directed by George Clooney, and Being the Ricardos,
starring Nicole Kidman and directed by Aaron Sorkin, will release in theaters and
follow-on Prime Video

Prime Video streamed its • Prime Video streamed its first-ever Union of European Football Associations (UEFA)
first-ever Union of Champions League soccer matches in Germany and Italy, and the first Ligue 1 soccer
European Football matches in France
Associations (UEFA)
Champions League • Amazon Music announced expanded access to spatial and high-quality audio for all
soccer matches in its Unlimited subscribers worldwide, unlocking the highest-quality streaming audio
Germany and Italy for even more music fans

Source: Company Website, Crispidea Analysis

24
CrispIdea | RESEARCH Amazon.com, Inc.

Key Developments
Amazon Devices and Services

• Amazon announced Astro, a new home robot that brings together advancements in
AI, computer vision, sensor technology, and voice and edge computing to help
customers monitor their home, look out for loved ones, and bring Alexa with them
around the house
Amazon and Disney
• Amazon introduced Amazon Glow, an interactive device that combines immersive
announced ‘Hey,
projection, sensing, and video technologies to make users feel like they are in the
Disney!’, an entirely new
same room
kind of voice assistant
that will work on
• Amazon announced three new expansions to the Halo family: Halo View, a health
supported Echo devices
tracker with a color display for at-aglance access to Halo health metrics

• Amazon and Disney announced ‘Hey, Disney!’, an entirely new kind of voice
assistant that will work on supported Echo devices at home and across Disney Resort
hotel rooms at Walt Disney World

• Ring and Blink introduced new home security devices and services with the Ring
Alarm Pro, Virtual Security Guard, and Blink Video Doorbell. Ring Alarm Pro is a first-
of-its-kind home security system that combines protection against break-ins, floods,
fires, and network threats with a built-in eero Wi-Fi 6 router for connectivity

Amazon Web Services

• AWS announced plans to open an infrastructure Region in New Zealand in 2024 that
will consist of three Availability Zones, giving customers more choice and flexibility
AWS announced plans to to leverage advanced technologies
open an infrastructure
Region in New Zealand in • AWS announced the general availability of Amazon Elastic Compute Cloud (Amazon
2024 that will consist of EC2) DL1 instances, a new instance type designed for training machine learning
three Availability Zones, models
giving customers more
choice and flexibility to
leverage advanced
technologies

Source: Company Website, Crispidea Analysis

25
CrispIdea | RESEARCH Amazon.com, Inc.

Top M&A deals in the recent past

Acquiror Name Target Name Announced Date Rank Date Deal Value (USD mn) Deal Synopsis
UK - Whole Foods Market Inc, ultimately owned by Amazon.com
Undisclosed Acquiror Fresh & Wild Holdings Ltd 9/14/2021 9/14/2021 - Inc, intended to divest Fresh & Wild Holdings Ltd, a London-based
supermarket operator, to an undisclosed acquiror.
US - Amazon.com Inc-Music, a unit of Amazon.com Inc, acquired
Amazon.Com Inc-Music Art19 Inc 6/25/2021 6/25/2021 -
Art19 Inc, a San Francisco-based internet portal operator.
US - Amazon Web Services Inc, a unit of Amazon.com Inc, acquired
Amazon Web Services Inc Wickr Inc 6/25/2021 6/25/2021 - the entire share capital of Wickr Inc, a New York-based reproducer
of software. Terms were not disclosed.
US - Amazon.com Inc was rumored to be planning to acquire a 20%
Amazon.com Inc Plus Inc 6/22/2021 6/22/2021 -
stake in Plus Inc, a Cupertino-based software publisher.
US - Amazon.com Inc acquired an undisclosed minority stake in
Amazon.com Inc Inpher Inc 3/16/2021 3/16/2021 - Inpher Inc, a New York-based software publisher, in a privately
negotiated transaction.
INDIA - Amazon Technologies Inc of the US, a unit of Amazon.com
Amazon Technologies Inc Delvit Solutions Pvt Ltd 3/31/2021 3/31/2021 15 Inc, acquired Delvit Solutions Pvt Ltd, a Bengaluru-based software
publisher, for a total INR 1.076 bil (USD 14.651 mil).
US - Amazon.com Inc planned to acquire a 22.771% stake or 15.563
mil common shares in Air Transport Services Group Inc, a
Wilmington-based provider of courier services, for a USD 9.73 per
share, or a total value of USD 131.967 mil, in a privately negotiated
Amazon.com Inc Air Transport Services Group Inc 3/8/2021 3/8/2021 132 transaction.
FINLAND - Amazon.com Inc of the US acquired Umbra Software Oy,
Amazon.com Inc Umbra Software Oy 1/22/2021 1/22/2021 - a Helsinki-based software publisher.
AUSTRALIA - Amazon.com Inc of the US acquired Selz.Com Pty Ltd, a
Sydney-based provider of computer systems design services. Terms
Amazon.com Inc Selz.Com Pty Ltd 1/15/2021 1/15/2021 - of the transaction were not disclosed.
US - Maori European Holding SL of Spain acquired three logistic
centers of Amazon.com Inc, a Seattle-based online retailer, for a
Maori European Holding SL Amazon.com Inc-Logistic Centers(3) 2/12/2021 2/12/2021 132 total USD 132 mil.

CANADA - Amazon.com Inc (Amazon) of the US acquire four boeing

767-300 aircraft of WestJet Airlines Ltd, a Calgary-based passenger
airline, ultimately owned by Onex Corp. Concurrently, Amazon
Amazon.com Inc WestJet Airlines Ltd-Boeing 767-300 Aircraft(4)1/5/2021 1/5/2021 - acquired seven boeing 767-300 aircraft of Delta Air Lines Inc.
US - Amazon.com Inc (Amazon) acquired seven boeing 767-300
aircraft of Delta Air Lines Inc-Boeing 767, an Atlanta-based
passenger airline. Concurrently, Amazon acquired four boeing 767-
Amazon.com Inc Delta Air Lines Inc-Boeing 767-300 Aircraft(7) 1/5/2021 1/5/2021 - 300 aircraft of WestJest Airlines Ltd.
US - Amazon.com Inc planned to acquire Wondery Inc, a West
Hollywood-based internet portal operator. The terms of the
transaction were not disclosed, but according to sources close to the
transaction, the value was estimated at USD 300 mil. Originally, An
Investor Group was rumored to be planning to acquire Wondery
Amazon.com Inc Wondery Inc 12/31/2020 12/31/2020 - Inc.
US - Amazon.com Inc definitively agreed to merge with MGM
Holdings Inc (MGM), a Los Angeles-based provider of film and
television content production and distribution services, for USD 8.45
bil. Originally, in December 2020, MGM announced that it was
Amazon.com Inc MGM Holdings Inc 5/26/2021 5/26/2021 8450 seeking a buyer for the company.

Source: Refinitiv 26
CrispIdea | RESEARCH Amazon.com, Inc.

Peer Comparison - Summary

Peer Median 26,251 10,715 12,323 15,288 11

Peer Size Metrics Company Name FY Ending Price Market Cap Revenue (FY0) Revenue (FY1) Revenue (FY2) EBITDA Margin (FY1)
AMZN.O Amazon.com Inc 31-12-2020 3,572.57 18,11,820.37 3,86,064.00 4,70,526.41 5,53,915.79 14.88
COST.OQ Costco Wholesale Corp 29-08-2021 539.65 2,38,430.22 1,95,929.00 2,14,280.31 2,30,583.83 4.44
TGT.N Target Corp 30-01-2021 244.57 1,17,615.06 93,561.00 1,06,570.31 1,08,979.02 10.62
BKNG.OQ Booking Holdings Inc 31-12-2020 2,297.13 94,328.16 6,796.00 10,851.58 15,592.62 25.31
ETSY.OQ ETSY Inc 31-12-2020 279.24 35,345.30 1,725.63 2,297.25 2,752.32 29.13
BBY.N Best Buy Co Inc 30-01-2021 138.00 33,943.06 47,262.00 51,573.32 51,120.15 7.86
ROKU.OQ Roku Inc 31-12-2020 230.98 31,035.11 1,778.39 2,791.93 3,776.81 16.30
DLTR.OQ Dollar Tree Inc 30-01-2021 132.56 29,814.32 25,509.30 26,259.55 27,492.16 9.58
CHWY.N Chewy Inc 31-01-2021 66.04 27,589.09 7,146.26 9,045.67 10,880.53 2.20
W.N Wayfair Inc 31-12-2020 258.53 27,027.88 14,145.16 13,794.21 15,502.15 4.67
EXPE.OQ Expedia Group Inc 31-12-2020 173.24 26,250.65 5,199.00 8,636.36 11,728.21 16.05
VIAC.OQ ViacomCBS Inc 31-12-2020 33.54 21,832.31 25,285.00 28,060.62 29,251.53 16.60
PTON.OQ Peloton Interactive Inc 30-06-2021 44.08 14,402.88 4,021.80 4,614.39 5,868.03 (9.79)
M.N Macy's Inc 30-01-2021 33.77 10,458.73 18,097.00 24,051.22 23,836.49 12.24
KSS.N Kohls Corp 30-01-2021 57.56 8,664.75 15,955.00 18,848.07 19,258.77 13.50
JWN.N Nordstrom Inc 30-01-2021 32.32 5,136.39 10,715.00 14,562.15 15,074.20 7.88
TRIP.OQ Tripadvisor Inc 31-12-2020 28.17 3,892.56 604.00 913.91 1,381.11 13.01
ASOS.L ASOS PLC 31-08-2021 2,601.00 2,610.32 3,910.50 4,443.73 5,127.62 6.96
GRPN.OQ Groupon Inc 31-12-2020 23.76 702.35 1,416.87 969.37 981.00 13.62
SHLDQ.PK Sears Holdings Corp 03-02-2018 0.01 1.08 16,702.00

• AMZN’s Market Cap is $1.8tn, higher than the peer median of $26.3bn. It is also higher than the peer company -
ETSY

• In FY20, AMZN’s reported revenues of $386.1bn as compared to the peer median of $10.7bn. Revenues are
expected to increase by 22% and 18% in FY21 and FY22, respectively

• AMZN’s peer - ETSY’s revenues are expected to increase by 33% and 20% in FY21 and FY22, respectively

• For FY21, EBITDA margin is expected to be 14.88%, higher than the peer median of 11%

• For FY21, peer company – ETSY’s EBITDA margin is expected to be 29.13%, higher than the AMZN’s EBITDA
margin

27
CrispIdea | RESEARCH Amazon.com, Inc.

Peer Comparison - Profitability

Peer Median 37 5 5 19 4
Peer Profitability (%) Company Name GM LTM Op M LTM ROA LTM ROE LTM Op M 5 yr Avg
AMZN.O Amazon.com Inc 41.31 6.18 7.90 25.83 4.79
COST.OQ Costco Wholesale Corp 12.88 3.42 8.85 27.93 3.24
TGT.N Target Corp 29.68 8.73 12.91 50.01 5.98
BKNG.OQ Booking Holdings Inc 13.60 1.64 7.15 28.97
ETSY.OQ ETSY Inc 73.25 21.75 16.95 80.72 15.18
BBY.N Best Buy Co Inc 22.75 6.04 14.06 62.52 4.64
ROKU.OQ Roku Inc 52.35 10.94 9.51 14.67 (3.59)
DLTR.OQ Dollar Tree Inc 30.69 8.03 7.25 21.55 5.15
CHWY.N Chewy Inc 27.01 0.15 0.65
W.N Wayfair Inc 28.71 1.43 2.09 (3.86)
EXPE.OQ Expedia Group Inc 80.47 (9.39) (3.70) (31.75) (0.06)
VIAC.OQ ViacomCBS Inc 40.09 16.72 5.96 17.46 17.93
PTON.OQ Peloton Interactive Inc 34.06 (15.15) (16.07) (38.34)
M.N Macy's Inc 40.39 6.11 4.52 32.26 0.85
KSS.N Kohls Corp 40.85 7.05 6.26 20.10 4.94
JWN.N Nordstrom Inc 34.81 1.51 - - 3.19
TRIP.OQ Tripadvisor Inc 91.38 (25.10) (6.78) (17.16) 4.78
ASOS.L ASOS PLC 45.43 4.86 5.27 13.92 3.91
GRPN.OQ Groupon Inc 66.34 (0.27) 8.53 83.31 (2.34)
SHLDQ.PK Sears Holdings Corp 22.02 (10.70) (29.19) (4.45)

• AMZN’s 5-year operating margin increase by 4.79%,above than the peer median of 4%

• The company’s ROE and ROA is positive, and the ratios are above the peer median

• On LTM basis, ROA is 7.90% as compared to the peer median of 5% and peer company - ETSY of 16.95%

• On LTM basis, ROE is 25.83% as compared to the peer median of 19% and peer company - ETSY of 80.72%

28
CrispIdea | RESEARCH Amazon.com, Inc.

Peer Comparison - Growth

Revenue Revenue EBITDA

EPS FQ1 EPS FQ0 EPS FY1 EPS FY0
RIC Company Name FQ1 YoY this Qtr FQ1 YoY
YoY (%) YoY (%) YoY (%) YoY (%)
(%) YoY (%) (%)
AMZN.O Amazon.com Inc -73.64 -50.53 -1.99 81.79 9.74 16.07 -10.13

Peer Average 102.83 1069.94 133.09 -25.09 29.83 27.40 144.72

COST.OQ Costco Wholesale Corp 13.30 28.29 10.05 26.60 13.52 14.82 12.43
TGT.N Target Corp 7.38 8.60 40.59 47.42 11.37 9.48 3.05
BKNG.OQ Booking Holdings Inc 2535.45 207.25 811.92 -95.41 131.05 62.73 2205.25
ETSY.OQ ETSY Inc -28.92 -18.42 13.31 253.95 10.95 14.93 -6.89
BBY.N Best Buy Co Inc -7.34 74.27 25.58 30.31 -2.28 15.95 -5.07
ROKU.OQ Roku Inc -84.53 433.33 1231.34 73.08 38.05 51.30 -29.90
DLTR.OQ Dollar Tree Inc -31.19 11.82 -0.99 18.70 3.82 2.66 -20.88
CHWY.N Chewy Inc 43.51 50.00 127.69 63.49 24.09 29.31 311.54
W.N Wayfair Inc -150.73 -93.91 -47.38 162.76 -9.10 -15.54 -89.87
EXPE.OQ Expedia Group Inc 126.79 1704.55 109.14 -242.76 153.62 81.68 355.86
VIAC.OQ ViacomCBS Inc -57.01 -16.48 -12.88 -16.17 8.82 7.41 -37.97
PTON.OQ Peloton Interactive Inc -805.58 -705.00 -846.76 6.25 10.42 6.97 -378.75
M.N Macy's Inc 139.10 747.37 308.77 -175.95 22.86 30.31 33.10
KSS.N Kohls Corp 103.63 16400.00 402.49 -148.56 12.37 12.89 27.71
JWN.N Nordstrom Inc 64.38 130.25 133.43 -230.27 14.75 80.53 18.01
TRIP.OQ Tripadvisor Inc 123.54 194.12 83.75 -170.06 118.22 101.62 252.01
ASOS.L ASOS PLC -23.42 9.67
GRPN.OQ Groupon Inc -67.18 153.33 163.98 -171.54 -35.29 -29.89 -34.65
SHLDQ.PK Sears Holdings Corp

• AMZN’s EPS is expected to decline by 73.64% in Q4FY21, compared to the peer average of 102.83%

• For FY21, AMZN’s EPS is expected to decline by 1.99%, compared to the peer average of 133.09%

• For Q4FY21, AMZN’s revenue is expected to grow by 9.74%, compared to the peer average of 29.83%

• For Q4FY21, AMZN’s EBITDA is expected to decline by 10.13%, compared to the peer average of 144.72%

29
CrispIdea | RESEARCH Amazon.com, Inc.

Peer Comparison – Price Performance

380

330

280
245.60

230 191.64

180
161.97
161.37
130 150.89
127.98
80 84.39

30
Oct 19 Dec 19 Feb 20 Apr 20 Jun 20 Aug 20 Oct 20 Dec 20 Feb 21 Apr 21 Jun 21 Aug 21 Oct 21

Amazon.com Inc Costco Wholesale Corp Wayfair Inc Expedia Group Inc Nordstrom Inc Best Buy Co Inc Standard & Poor's Corp

• As of Oct 02, 2021, AMZN’s share price is $3283.26

• Over the last 3 months, AMZN declined to 6.49%, against S&P 500 index
performance of 0.11%

• Over the last 6 months, AMZN increased to 3.87%, against S&P 500 index
performance of 8.39%

• In the last 2 years, Wayfair has given high returns of 145.6% followed by BBY’s
returns of 61.97% and COST’s returns of 61.37%. AMZN increase to 91.64%
returns against S&P 500 index performance of 50.89%

Company Name Price in Native Performance Comparison over months

Ric Code As of October 02, 2021 1 month 3 month 6 month 1 year 2 year 3 year 5 year
AMZN.O Amazon.com Inc 3,283.26 (5.19)% (6.49)% 3.87% 5.06% 91.64% 66.55% 292.12%
COST.OQ Costco Wholesale Corp 448.33 (2.74)% 12.38% 26.31% 29.59% 61.37% 94.66% 213.86%
W.N Wayfair Inc 253.07 (7.74)% (15.93)% (25.13)% (17.12)% 145.60% 87.77% 542.80%
EXPE.OQ Expedia Group Inc 169.79 18.10% 1.42% (3.49)% 84.37% 27.98% 31.66% 45.47%
JWN.N Nordstrom Inc 26.87 (5.35)% (27.16)% (26.90)% 109.92% (15.61)% (54.10)% (48.21)%
BBY.N Best Buy Co Inc 105.31 (9.42)% (8.94)% (9.03)% (6.32)% 61.97% 40.04% 175.83%
.SPX Standard & Poor's Corp 4,357.04 (3.97)% 0.11% 8.39% 30.12% 50.89% 49.04% 100.95%

30
CrispIdea | RESEARCH Amazon.com, Inc.

Ownership

Investor Full Name Holdings Pct Of Traded Shares Held Investor Shares Held Holdings Change in Holdings Value Holdings Value Held Holdings Filing Date
Bezos (Jeffrey P) 13.31% 6,75,06,244 -3,82,20,84,964 2,48,19,14,31,503 18-Nov-21
The Vanguard Group, Inc. 6.56% 3,32,80,421 1,81,72,90,698 1,09,32,75,14,202 30-Sep-21
BlackRock Institutional Trust Company, N.A. 3.51% 1,78,15,033 82,25,21,455 58,52,30,96,006 30-Sep-21
T. Rowe Price Associates, Inc. 3.23% 1,63,82,249 68,48,19,149 53,81,63,43,255 30-Sep-21
State Street Global Advisors (US) 3.22% 1,63,22,646 1,18,01,44,050 53,62,05,45,016 30-Sep-21
Fidelity Management & Research Company LLC 2.99% 1,51,46,180 17,42,38,522 49,75,58,07,147 30-Sep-21
Geode Capital Management, L.L.C. 1.38% 69,97,644 81,56,52,437 22,98,75,40,446 30-Sep-21
Norges Bank Investment Management (NBIM) 0.90% 45,67,893 -27,26,11,555 14,87,73,07,748 31-Dec-20
Capital Research Global Investors 0.79% 40,09,847 91,20,48,650 13,17,25,07,789 30-Sep-21
Capital International Investors 0.67% 33,97,155 21,45,36,107 11,15,97,90,061 30-Sep-21
Northern Trust Investments, Inc. 0.66% 33,50,317 80,22,06,768 11,00,59,25,358 30-Sep-21
Nuveen LLC 0.63% 31,94,015 -23,25,67,692 10,49,24,67,036 30-Sep-21
Capital World Investors 0.62% 31,29,722 -40,58,30,557 10,28,12,61,959 30-Sep-21
Legal & General Investment Management Ltd. 0.54% 27,61,074 55,92,97,770 9,07,02,38,533 30-Sep-21
Wellington Management Company, LLP 0.54% 27,57,222 -1,40,19,49,951 9,05,75,84,559 30-Sep-21
JP Morgan Asset Management 0.53% 26,69,182 -30,71,24,960 8,76,83,69,637 30-Sep-21
Morgan Stanley Smith Barney LLC 0.53% 26,64,251 16,49,54,999 8,75,21,71,105 30-Sep-21
Jennison Associates LLC 0.52% 26,19,195 -44,48,96,252 8,60,41,60,343 30-Sep-21
AllianceBernstein L.P. 0.52% 26,15,379 42,33,79,240 8,59,16,24,630 30-Sep-21
BlackRock Investment Management (UK) Ltd. 0.45% 22,65,794 13,76,69,456 7,44,32,23,922 30-Sep-21

31
CrispIdea | RESEARCH Amazon.com, Inc.

Ownership Momentum

Top Buyers Top Buyers

Investment Equity Assets Current
Rank Share ∆ Name Style (M) Address City Shares
1 11,68,931 Morgan Stanley Investment Management (Singapore) Core Growth 58,983.11 Singapore 11,68,931
2 11,52,907 Polen Capital Management, LLC GARP 55,230.45 Boca Raton 11,52,907
3 8,88,937 BlackRock (Netherlands) B.V. GARP 1,01,278.90 Amsterdam 9,76,575
4 8,09,096 BMO Capital Markets (US) Broker-Dealer 80,139.47 New York 8,36,921
5 8,05,310 AllianceBernstein L.P. Core Growth 3,13,974.74 New York 26,15,379
6 7,31,954 Geode Capital Management, L.L.C. Index 8,70,548.58 Boston 69,97,644
7 7,05,088 Jane Street Capital, L.L.C. Broker-Dealer 39,394.69 New York 7,38,535
8 6,09,008 T. Rowe Price Associates, Inc. GARP 13,62,039.37 Baltimore 1,63,82,249
9 5,92,808 Morgan Stanley & Co. LLC Broker-Dealer 1,35,994.61 New York 6,74,511
10 5,47,763 Magellan Asset Management Limited Core Growth 53,841.36 Sydney 5,47,800

Top Sellers TopSellers

Investment Equity Assets Current
Rank Share ∆ Name Style (M) Address City Shares
1 -64,41,481 Bezos (Jeffrey P) 2,25,175.77 6,85,45,823
2 -18,74,208 Baillie Gifford & Co. Core Growth 3,70,816.00 Edinburgh 22,45,077
3 -17,42,827 Morgan Stanley Investment Management Inc. (US) GARP 1,30,812.74 New York 2,73,764
4 -10,55,639 Capital World Investors Growth 8,20,698.76 Los Angeles 31,29,722
5 -9,13,710 Capital International Investors Growth 4,47,812.69 Los Angeles 33,97,155
6 -6,86,923 Citadel Advisors LLC Hedge Fund 83,370.31 Chicago 83,006
7 -6,79,287 Mellon Investments Corporation Index 2,66,963.00 Boston 18,70,899
8 -6,43,349 BlackRock Institutional Trust Company, N.A. Index 33,22,246.12 San Francisco 1,78,15,033
9 -5,86,727 Fidelity Management & Research Company LLC GARP 18,06,178.33 Boston 1,51,46,180
10 -5,73,610 BlackRock Investment Management (UK) Ltd. Core Growth 5,46,721.01 London 22,65,794

Top 5 Buyers (solid lines) and Top 5 Sellers (dotted lines)

8,00,00,000 3,500.0000
Morgan Stanley
Investment
7,00,00,000 Management
3,400.0000 (Singapore)
Polen Capital
6,00,00,000 Management,
LLC
3,300.0000
BlackRock
5,00,00,000
(Netherlands)
B.V.

4,00,00,000 3,200.0000 BMO Capital

Markets (US)

3,00,00,000
3,100.0000 AllianceBernstei
n L.P.
2,00,00,000

3,000.0000 Bezos (Jeffrey

P)
1,00,00,000

Capital
0 2,900.0000 Research Global
Investors

32
CrispIdea | RESEARCH Amazon.com, Inc.

Stock Price Movement – 3 Months

Quarterly Price Movement

4300.00 4300.00

4100.00 4100.00

3900.00 3900.00

3700.00 3700.00

3500.00 3500.00

3300.00 3300.00

3100.00 3100.00

Price Close Price Target - Mean

• On Nov 22, 2021, AMZN closed its last trading session at $3572.57, below the price target mean by 14%

• From Aug 24, 2021, to Nov 22, 2021, the stock rose to 8%

33
CrispIdea | RESEARCH Amazon.com, Inc.

Stock Price Movement – 12 Months

Annual Price Movement

4300.00 4300.00

4100.00 4100.00

3900.00 3900.00

3700.00 3700.00

3500.00 3500.00

3300.00 3300.00

3100.00 3100.00

2900.00 2900.00

Price Close Price Target - Mean

• The company has a 52-week high of $3773.08 and the 52-week low is $2881

• The Market Capitalization of the company stands at $1.8tn

• From Nov 27, 2020, to Nov 22, 2021, the stock’s returns rose to 12%

34
CrispIdea | RESEARCH Amazon.com, Inc.

Stock Price Movement – 3 Year Price Movement

3-Year Price Movement

4600.00 4600.00

4100.00 4100.00

3600.00 3600.00

3100.00 3100.00

2600.00 2600.00

2100.00 2100.00

1600.00 1600.00

1100.00 1100.00

Price Close Price Target - Mean

• From Nov 23, 2018, to Nov 22, 2021, the stock’s returns rose 138%, due to strong growth in AWS

• AMZN has a 50-day moving Avg. and 200-day moving Avg. of $3405.2 and $3344.49, respectively

35
CrispIdea | RESEARCH Amazon.com, Inc.

CrispIdea Coverage

We maintain a “Buy” rating for Amazon and its TP to $4,150 for FY22. This provides an upside potential of 16% over the
CMP of $3580.41. We derive the estimation based on P/S of ~3.79 times for FY22. We also base our valuation on
forward PE of 81.18x, EV/Revenue of 3.77x, EV/EBITDA of 63.9x and P/S of 3.79 times for FY22.

4500.00
4150

4000.00
3580.41
3500
3500.00

3000.00 2890.30 3099.40 3340.88

2700
2440
2500.00
2094 2114
2000.00 1800
1785.00
1944 1776.29
1500.00 1555
1294.58 1665.53
1185
1000.00 760.59 1056
664.14 887
439 463
500.00
510
358.66
0.00
14-01-2015

14-07-2015

14-07-2016

14-03-2017

14-01-2018

14-09-2018

14-03-2019

14-03-2020

14-11-2020

14-05-2021

14-09-2021
14-07-2014
14-09-2014
14-11-2014

14-03-2015
14-05-2015

14-09-2015
14-11-2015
14-01-2016
14-03-2016
14-05-2016

14-09-2016
14-11-2016
14-01-2017

14-05-2017
14-07-2017
14-09-2017
14-11-2017

14-03-2018
14-05-2018
14-07-2018

14-11-2018
14-01-2019

14-05-2019
14-07-2019
14-09-2019
14-11-2019
14-01-2020

14-05-2020
14-07-2020
14-09-2020

14-01-2021
14-03-2021

14-07-2021

14-11-2021
Adj Close CI Target Price

36
CrispIdea | RESEARCH Amazon.com, Inc.

CrispIdea Stock Coverage

Date Coverage Rating CMP $ Target Price $ Horizon Achievement

10-Jul-14 Fundamental Buy 329 418 8-12 Months Achieved

26-May-15 Fundamental Buy 425 439 8-12 Months Achieved

05-Feb-16 Fundamental Sell 574 463 12 Months TBD

03-Aug-16 Fundamental Sell 759.95 510 12 Months TBD

01-Mar-17 Fundamental Hold 853 887 12 Months Achieved

25-May-17 Fundamental Hold 995 1056 12 Months Achieved

07-Aug-17 Fundamental Hold 987.58 1056 12 Months Achieved

14-Nov-17 Fundamental Hold 1129.66 1185 12 Months Achieved

19-Feb-18 Fundamental Hold 1448.69 1555 12 Months Achieved

21-May-18 Fundamental Buy 1585.46 1800 12 Months Achieved

08-Aug-18 Fundamental Buy 1885.0 2094 12 Months Achieved

13-Nov-18 Fundamental Buy 1712.43 2094 12 Months Achieved

28-Feb-19 Fundamental Buy 1639.83 1944 12 Months Achieved

10-May-19 Fundamental Buy 1889.98 2114 12 Months Achieved

21-Aug-19 Fundamental Buy 1823.4 2114 12 Months Achieved

12-Nov-19 Fundamental Buy 1778 2114 12 Months Achieved

13-Feb-20 Fundamental Buy 2149 2440 12 Months Achieved

13-May-20 Fundamental Buy 2367.9 2700 12 Months Achieved

14-Aug-20 Fundamental Buy 3148.02 3500 12 Months TBD

12-Nov-20 Fundamental Buy 3004.48 3500 12 Months TBD

08-Feb-21 Fundamental Buy 3322.94 4150 12 Months TBD
10-May-21 Fundamental Buy 3190.49 4150 12 Months TBD
30-Jul-21 Fundamental Buy 3327.59 4150 12 Months TBD
24-Nov-21 Fundamental Buy 3580.41 4150 12 Months TBD

37
CrispIdea | RESEARCH Amazon.com, Inc.

About CrispIdea

• CrispIdea is a financial and information services firm focused on providing equity research, portfolio management,
personal wealth management and brokerage services. On the information services side, it provides communications
consulting and research services to a host of clients.
• CrispIdea tracks a limited number of companies and sectors but strives to provide quality insights through straight
forward analysis with an objective of creating long-term wealth with moderate to low risk. CrispIdea leverages a
large number of in-house and external experts operating within the industry who have strong financial, operational
and strategic background.
• For more details visit www.crispidea.com or contact

Shejal Ajmera
CrispIdea
+91-991 644 4778
[email protected]

Disclaimers & Disclosures

• This report was produced by a member company of the Crispidea. This report is for the use of intended recipients
only and may not be reproduced (in whole or in part) or delivered or transmitted to any other person without our
prior written consent. By accepting this report, the recipient agrees to be bound by the terms and limitations set out
herein.

• The information contained in this report has been obtained from public sources believed to be reliable and the
opinions contained herein are expressions of belief based on such information. No representation or warranty,
express or implied, is made that such information or opinions is accurate, complete or verified and it should not be
relied upon as such. This report does not constitute a prospectus or other offering document or an offer or
solicitation to buy or sell any securities or other investments. Information and opinions contained in this report are
published for reference of the recipients and are not to be relied upon as authoritative or without the recipient’s
own independent verification or taken in substitution for the exercise of judgment by the recipient. All opinions
contained herein constitute the views of the analyst(s) named in this report; they are subject to change without
notice and are not intended to provide the sole basis of any evaluation of the subject securities and companies
mentioned in this report. Any reference to past performance should not be taken as an indication of future
performance. No member company of the Group accepts any liability whatsoever for any direct or consequential
loss arising from any use of the materials contained in this report.

• The analyst(s) named in this report certifies that (i) all views expressed in this report accurately reflect the personal
views of the analyst(s) with regard to any and all of the subject securities and companies mentioned in this report
and (ii) no part of the compensation of the analyst(s) was, is, or will be, directly or indirectly, related to the specific
recommendation or views expressed herein.

38
CrispIdea | RESEARCH Amazon.com, Inc.

Recommendation Structure

• Stock recommendations are based on absolute upside (downside), which we define as (target price* - current price)
/ current price. If the upside is 10% or more, the recommendation is BUY. If the downside is 10% or more, the
recommendation is UNDERPERFORM or SELL. For stocks where the upside or downside is less than 10%, the
recommendation is HOLD. In addition, we have key buy and key sell lists in each market, which are our most
commercial and/or actionable BUY and UNDERPERFORM calls.

• Unless otherwise specified, these recommendations are set with a 12-month horizon. Thus, it is possible that future
price volatility may cause a temporary mismatch between upside/downside for a stock based on market price and
the formal recommendation.

• *In most cases, the target price will equal the analyst's assessment of the current fair value of the stock. However, if
the analyst doesn't think the market will reassess the stock over the specified time horizon due to a lack of events or
catalysts, then the target price may differ from fair value. In most cases, therefore, our recommendation is an
assessment of the mismatch between current market price and our assessment of current fair value.

© 2021 CRISPIDEA

39