AMZN
⚠️ Amazon may face headwinds from potential trade wars with China due to its reliance on Chinese vendors and advertisers.
☁️ The core of Amazon’s business lies in cloud computing (AWS), which contributes over 70% of its operating profit.
🚀 Trump’s focus on bringing technology back to the U.S. could significantly benefit Amazon’s cloud computing business.
✅ While tariffs may affect the online retail side, the overall impact is expected to be offset by growth in AWS.
@InvertirdesdeCero:
“Amazon could face certain headwinds if a trade war with China begins, because many vendors and advertisers in China represent an important part of Amazon’s operations. The increase in the cost of both shipping and imports from China could reduce a little what is known as the GMV, which is the general growth of the gross volume of merchandise. However, the business of Amazon is not selling in its online store. The business of Amazon is cloud computing, and cloud computing already contributes more than 70% of the operating profit. All the situation that Donald Trump raises towards the United States, towards bringing all that technological part to the United States, of favoring, etc., can be something very interesting for Amazon, and the business of Amazon in that sense is not going to be resented; it is something positive.”
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