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Amazon.com
(NasdaqNM: AMZN)
USA
For a company that some folks predicted wouldn't even survive, Amazon.com has managed to prove it's a keeper. The leading online retailer posted a return on equity of 102.5% in the 12 months ended May 31. The reason: Amazon has managed to keep free cash flow high even as it has boosted technology spending, by 59% in the first quarter. Although the company said it expects R&D growth to decline, shareholders worry that rising competition from eBay, Google, and mainstream retailers could force Amazon to keep spending. As a result, its stock has dropped 27% since the start of the year.
Company Info |
|
| 2005 Rank | Not Ranked |
| Sales* ($ Millions) | 8,867.0 |
| Sales Growth (over prev. year) |
22 % |
| Profits* ($ Millions) | 332.0 |
| Return on Equity | 102.5 % |
| Total Return on Sales (12-mo.) | -2.5 |
| Share Price As of 5/31/06 | 34.61 |
| CURRENT MARKET INFO | NasdaqNM: AMZN |
| No. of Employees | 12,000 |
| Industry | Internet Companies |
| COMPANY WEB SITE > | |
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Amazon.com operates Web sites that sell various products and services, which primarily include apparel, shoes, and accessories; health and personal care; baby care products; books; camera and photography; and consumer electronics. The company and other sellers also offer various new, refurbished, and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, digital video discs, electronics and office, toys and baby, and home and garden. These products are purchased from distributors, publishers, and manufacturers. The company and its affiliates operate seven retail Web sites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.joyo.com. It also operates www.a9.com and www.alexa.com that enable search and navigation, and www.imdb.com, a movie database Web site. The company was founded in 1994 and is headquartered in Seattle.
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