Amazon Has Room to Grow to 5% of Global Retail, Analyst Pachter Says

The video discusses Amazon's stock valuation challenges due to rapid earnings growth. It highlights the importance of gross margin as a key metric, noting its consistent increase over the years. The discussion covers Amazon's difficulty in spending its growing profits, leading to increased earnings per share. The video attributes earnings acceleration to growth in Amazon Web Services and fulfillment services, both experiencing high double-digit growth rates. Finally, it explores Amazon's potential to expand its share in the global retail market, suggesting significant growth opportunities.

What is the key metric that investors should focus on when evaluating Amazon's stock?

• Gross margin

• Revenue growth

• Net income

• Operating expenses

How much are Amazon's gross profit dollars growing annually?

• $10 billion

• $15 billion

• $25 billion

• $20 billion

What is one of the main reasons for Amazon's earnings acceleration?

• Gross profit expansion

• Decreased competition

• Increased marketing expenses

• Higher tax rates

Which two areas are primarily driving Amazon's growth?

• Fulfillment by Amazon and Amazon Web Services

• Amazon Music and Audible

• Amazon Fresh and Alexa

• Amazon Prime and Kindle

What is the potential global retail market share Amazon could achieve in the future?

• 10%

• 5%

• 15%

• 2%