Amazon is investing $20 billion in Pennsylvania – a huge leap!

Amazon is investing $20 billion in Pennsylvania – a huge leap!

Amazon.com, Inc. has announced plans to make $20 billion in short- to medium-term investments in Pennsylvania. This significant expenditure is intended to strengthen the company's infrastructure in the region and could at the same time contribute to job creation. The move comes at a time when Amazon is looking for ways to further expand its market share both in the US and internationally. The company currently generates around 69.3% of its sales in the United States, followed by Germany at 6.5%.

Amazon's share price is currently at $214.68, representing a change of +0.52% in the last five days. Since the beginning of the year the price has increased by 3.87%, while the comparison to the last closing price of -2.17% shows that there have been some fluctuations in the short term. The company's current market value is an estimated $1.95 trillion, making it one of the five most valuable publicly traded companies in the world. The median price target estimate is $239.22, implying an upside of 12.01%.

Development and sales

Founded in 1994 as a book mail order company, Amazon has since become the largest e-commerce retailer in the world. A significant portion of the company's profits today come from Amazon Web Services (AWS). AWS generated $90.8 billion in revenue in 2023 and accounted for 66.7% of Amazon's total earnings. Furthermore, Amazon has over 310 million customers, 80% of which are based in the USA. In 2023, Amazon's total revenue was $574.79 billion with a net margin of 14.88%.

In Germany, the platform has 46 million users and the figures show that Amazon has an impressive 60% market share in the German e-commerce market. Proprietary trading accounts for 17% of German e-commerce sales, while the Amazon marketplace contributes another 43%. For 2023, 849 million packages were sent in Germany.

Product and service diversity

Amazon offers a wide range of products and services. This allows it to serve consumers across a wide range of categories. The net sales distribution shows that 52.7% comes from services and 47.3% comes from physical products. Product categories offered include electronics, cultural products, and a variety of other merchandise and services. In particular, the third-party sector that sells via the platform has proven to be profitable.

Amazon's advertising revenue was $46.9 billion in 2023, accounting for 8.2% of total revenue. This highlights the growing importance of advertising within the business model and shows the potential for further growth in this area. With continued expansion and diversified revenue streams, Amazon remains a dominant force in global online commerce.