Amazon

Definition

Amazon is a multinational technology and e-commerce company founded by Jeff Bezos in 1994. It is one of the largest companies by market capitalization and a key player in various market sectors including cloud computing, digital streaming, and artificial intelligence.

5 Must Know Facts For Your Next Test

1. Amazon went public in 1997, with an IPO price of $18 per share.
2. The company's diversified business model includes Amazon Web Services (AWS), which is a significant contributor to its revenue.
3. Amazon's stock valuation often utilizes the Discounted Cash Flow (DCF) Model due to its expected future cash flows.
4. As part of corporate governance, Jeff Bezos transitioned from CEO to Executive Chairman in July 2021.
5. Amazon has historically outperformed many indices in the US financial markets due to its rapid growth and market expansion.

Review Questions

• What year did Amazon go public and what was its IPO price?
• Which subsidiary of Amazon significantly contributes to its revenue?
• What role did Jeff Bezos transition to in July 2021?

Related terms

IPO:

Initial Public Offering, the process through which a private company offers shares to the public for the first time.

DCF Model: Discounted Cash Flow Model, a valuation method used to estimate the value of an investment based on its expected future cash flows.

Market Capitalization:

The total market value of a company's outstanding shares of stock.