If you’re researching Amazon stock (AMZN), you’re researching a US mega-cap business that blends several powerful models into one company: large-scale retail, a global third-party marketplace, a high-margin cloud platform (AWS), and a fast-growing advertising engine. That mix is why AMZN often trades like more than “just” an e-commerce stock.
This guide explains what Amazon (AMZN) is, what industry it operates in, what Amazon sells, how Amazon makes money, how it returns capital, who its competitors are, what usually drives AMZN stock over time, the key risks to know, and the most important metrics to watch.
Amazon (AMZN) at a Glance
Amazon.com, Inc. is a publicly traded US company. Its business reaches consumers, sellers, enterprises, developers, content creators, and advertisers through online and physical stores, logistics and fulfilment networks, subscription offerings such as Prime, and a large cloud services platform under AWS.
At a high level, Amazon’s story is about retail scale plus infrastructure. Amazon sells products directly, enables third-party sellers to reach customers, earns fees for fulfilment and services, monetises traffic via ads, and sells cloud computing services globally through AWS.
AMZN Stock Basics: NASDAQ Listing and IPO Date
Amazon’s US stock ticker is AMZN, and the company’s common stock is listed on the Nasdaq Global Select Market. This matters for practical research because it confirms you’re looking at the main US-listed Amazon share class that trades on one of the most important venues for large US technology and growth stocks.
Amazon’s public-market history goes back to May 1997. Amazon’s filings discuss its initial public offering during that period, and the company’s 1997 prospectus is dated May 15, 1997, which is widely referenced as the IPO/prospectus date. That long trading history is useful context when you study AMZN stock price history, long-run drawdowns, and how Amazon evolved from early retail into a multi-engine platform business.
What Industry Is Amazon (AMZN) In?
Amazon is often labelled as an e-commerce or consumer discretionary stock, but in practice it sits across multiple categories at once. It is a global retailer and marketplace operator, a logistics and fulfilment platform, a digital advertising business, and a cloud infrastructure company through AWS.
That “hybrid” identity is why AMZN can react to different macro forces depending on the year. Sometimes the market focuses on retail demand and shipping costs; other times it focuses on AWS growth, cloud margins, and enterprise IT spending cycles.
What Does Amazon Sell?
Amazon’s offerings map cleanly to how customers and businesses actually spend money.
Consumer and retail
Amazon sells products directly through online stores and physical stores, and it also sells devices and digital content in various forms.
Third-party marketplace services
A large part of Amazon’s ecosystem is enabling third-party sellers. Amazon earns fees and service revenue tied to selling on its platform and using Amazon’s fulfilment and shipping services.
Subscriptions and Prime
Amazon earns subscription revenue, including Prime membership, which is designed to increase engagement, basket size, and purchase frequency across the retail ecosystem.
Advertising
Amazon sells advertising services to sellers, vendors, and others, including formats like sponsored ads, display, and video.
AWS cloud services
AWS sells cloud services such as compute, storage, and database services to start-ups, enterprises, government agencies, and academic institutions.
How Amazon (AMZN) Makes Money
A useful way to understand Amazon’s business model is to separate retail scale from platform monetisation and infrastructure profits, then see how they reinforce each other.
Amazon’s reported 2024 net sales show how diversified the revenue base is. For the year ended December 31, 2024, Amazon reported $637.959B in consolidated net sales. By segment, North America net sales were $387.497B, International net sales were $142.906B, and AWS net sales were $107.556B.
By major product and service group, Amazon’s 2024 net sales were reported as Online stores $247.029B, Physical stores $21.215B, Third-party seller services $156.146B, Advertising services $56.214B, Subscription services $44.374B, AWS $107.556B, and Other $5.425B.
Put simply, Amazon makes money through several reinforcing loops.
Retail and selection creates traffic
A broad catalogue, competitive pricing, and fast delivery attract customers. Scale improves convenience, which tends to increase repeat purchasing and Prime value.
Third-party services monetise the marketplace
When third-party sellers grow on Amazon, Amazon can earn commissions and service revenue, including fulfilment-related fees. This engine can grow even when Amazon is not the direct seller of record, because the marketplace is the “mall” and services are the take-rate.
Advertising monetises intent
Amazon’s advertising is closely tied to shopping intent. When sellers and brands pay for visibility, ad revenue can rise with marketplace activity and competition for placements. In 2024, Amazon reported $56.214B in advertising services net sales, which highlights how meaningful this engine has become.
AWS is the profit engine many traders focus on
AWS is often treated as the infrastructure side of Amazon. In 2024, AWS reported $107.556B in net sales and $39.834B in operating income, versus consolidated operating income of $68.593B. That gap is why AMZN valuation debates often revolve around AWS growth and margins.
Does AMZN Pay a Dividend and How Amazon Returns Capital?
Amazon has historically been valued as a growth-focused US stock rather than an income dividend stock. Instead of emphasising dividends, Amazon’s shareholder return discussions tend to centre on reinvestment, free cash flow potential, and selective repurchases.
Amazon has an authorised buyback programme: in March 2022, the board authorised repurchases of up to $10.0B of common stock with no fixed expiration. Amazon reported repurchasing 46.2 million shares for $6.0B in 2022, with no repurchases in 2023 or 2024, and $6.1B remaining under the authorisation as of December 31, 2024.
For traders, the practical takeaway is that AMZN capital return is not a steady dividend story. It’s more about whether operating performance produces durable cash generation, and whether management uses repurchases opportunistically versus prioritising reinvestment and balance sheet flexibility.
What Is AWS, and Why It Matters for AMZN Stock
AWS is Amazon Web Services, and it matters because it is both large and structurally different from retail.
AWS sells cloud infrastructure and platform services globally, and in 2024 it contributed a very large share of operating income relative to its share of revenue.
When markets debate AMZN, they often debate AWS because AWS can be more margin-rich, and because cloud demand ties to enterprise IT cycles and long-term trends like data growth and AI workloads.
Who Are Amazon’s Main Competitors?
Amazon competes across multiple markets, so “Amazon competitors” depends on what you’re comparing.
In global e-commerce and online retail, competitors often include Walmart, Target, and regionally strong platforms. In third-party marketplaces, Amazon is frequently compared with players such as eBay and other large commerce ecosystems. In cloud infrastructure, AWS competes most directly with Microsoft Azure and Google Cloud. In digital advertising, Amazon competes for budget with large platforms like Google and Meta, even though ad formats and purchase intent can differ.
A useful way to think about Amazon competition is that it’s not only product-versus-product. It’s also about logistics speed, marketplace liquidity, cloud ecosystem depth, and the ability to reinvest at scale.
What Usually Drives AMZN Stock Over Time
AMZN stock tends to move around a set of repeat drivers that traders watch quarter after quarter.
AWS growth and operating income
Because AWS is such a meaningful contributor to operating income, changes in AWS growth rates, pricing pressure, or margin direction can shift sentiment quickly.
Advertising growth
Advertising services are now a major revenue line. When ads accelerate, it can improve the quality of Amazon’s earnings mix because ads can scale with strong incremental economics.
Retail efficiency and delivery economics
Retail can be volume-heavy and cost-sensitive. Investors watch shipping, fulfilment productivity, and whether convenience improvements are expanding demand without eroding profitability.
International profitability
International results matter because improvements or setbacks can change the consolidated margin trajectory. Amazon reported positive International operating income in 2024 after losses in prior years, which can influence how traders model the business cycle.
Key Risks Investors Should Know About AMZN Stock
Any AMZN stock overview should mention the risks that can change both fundamentals and valuation: macro sensitivity for consumer demand, cost inflation in shipping and labour, competitive pressure in retail and cloud, regulatory scrutiny across marketplace and data practices, and the reality that large capital spending cycles can swing free cash flow.
AMZN Stock Key Metrics to Watch
If you want to track Amazon like a trader without drowning in noise, these are the high-signal metrics: AWS net sales growth and AWS operating income, advertising services growth, third-party seller services growth, consolidated operating income and margin direction, and cash generation trends across the cycle.
Track Amazon Exposure on MEXC: AMZNON and AMZNX
Some readers also follow Amazon-linked markets on crypto platforms that list tokenised or tracker-style products. On MEXC, examples include AMZNON and AMZNX.
AMZNON is typically shown as Amazon (Ondo Tokenised Stock). MEXC announcements about listing Ondo tokenised stocks include AMZNON among the supported markets.
AMZNX is typically shown as Amazon xStock, a tracker-style token product associated with Backed Finance, and it can trade around the underlying stock’s price level depending on product design and market conditions. MEXC provides market pages for AMZNX that reflect live trading quotes on the platform.
If you cover tokenised US stocks on your site, the key point to explain clearly is that tokenised or tracker products are not automatically the same as holding AMZN shares through a traditional brokerage account. Shareholder rights, custody structure, settlement, corporate actions, and protections can differ by product and jurisdiction, so readers should understand what they’re buying.
FAQ
What does Amazon (AMZN) do in simple terms?
Amazon sells products online and in physical stores, runs a massive third-party marketplace, sells cloud services through AWS, and monetises its ecosystem with subscriptions and advertising.
Is AWS part of Amazon?
Yes. AWS is one of Amazon’s major operating segments and a key profit driver in Amazon’s financials.
Does AMZN pay a dividend?
Amazon is generally not viewed as a dividend US stock. Investors typically focus more on growth, cash generation, and occasional repurchase activity than on dividend yield.
What usually moves AMZN stock price?
Common drivers include AWS growth and margin signals, advertising growth, retail profitability trends, guidance, and broader market risk appetite for large-cap US tech and consumer stocks.
Is tokenised AMZN the same as owning AMZN shares?
Not necessarily. Tokenised or tracker products like AMZNON or AMZNX may be designed to follow Amazon’s price, but they can differ from real share ownership in rights, structure, and protections. Always read the product terms carefully.
Disclaimer: This article is for educational purposes and general research. It is not financial advice or a recommendation to buy or sell any security.
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