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Amazon has grown to a stock market value that places it among the top 10 biggest companies in the U.S., and is on its way from No. 6 in size toward No. 1, according to a recent report.
The retailer has areas with more potential for growth than other companies that are roughly the same size or bigger, such as Facebook, Google and Apple, analyst Rob Sanderson says in an article from Barron’s, which is an investment news magazine.
“Amazon has a significant position in two of the largest growth opportunities there are,” Sanderson says. Those opportunities are in e-commerce and cloud computing, he says.
Estimates from JPMorgan show that Amazon sales account for nearly 40 percent of U.S. e-commerce, and could reach 50 percent by 2018, the Barron’s article says.
Barron’s puts that into perspective, noting that online retailing currently accounts for 11 percent to 12 percent of U.S. retail, and is expected to reach 14 percent by 2018.
Barron’s describes Amazon’s recent growth as “impressive,” stating that revenue for Amazon Web Services reached $2.57 billion during the first three months of 2016.
“Amazon is securing a quickly growing slice of a quickly growing pie,” the Barron’s article says.
