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
- Amazon went public in 1997, with an IPO price of $18 per share.
- The company's diversified business model includes Amazon Web Services (AWS), which is a significant contributor to its revenue.
- Amazon's stock valuation often utilizes the Discounted Cash Flow (DCF) Model due to its expected future cash flows.
- As part of corporate governance, Jeff Bezos transitioned from CEO to Executive Chairman in July 2021.
- 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?
"Amazon" appears in:
Study guides (6)
- Principles of Finance - 1.5 Markets and Participants
- Principles of Finance - 2.1 Business Structures
- Principles of Finance - 6.5 Market Value Ratios
- Principles of Finance - 11.2 Dividend Discount Models (DDMs)
- Principles of Finance - 11.3 Discounted Cash Flow (DCF) Model
- Principles of Finance - 12.1 Overview of US Financial Markets
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.
