AMZN (Amazon.com Inc) vs S&P 500 Comparison

AMZN

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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AMZN

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

AMZN

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

AMZN

BABA

PDD

3690

MELIN

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Amazon.com Inc
Glance View

Economic Moat

Wide

Market Cap

2.3T USD

Industry

Retail

Amazon.com Inc., founded by Jeff Bezos in 1994, began its journey as an unassuming online bookstore in a small garage in Bellevue, Washington. With a vision far ahead of his time, Bezos was keenly aware of the untapped potential of the Internet, and as the web grew, so did Amazon. The company's initial focus on books provided a perfect entry into the digital space, but its model was designed for expansion. As it evolved, Amazon quickly diversified its offerings, venturing into electronics, clothing, groceries, and virtually every consumer product imaginable. By constantly redefining e-commerce, it transformed into a behemoth through strategic investments and innovations in technology and logistics. Key to its success was the seamless user experience it offered, supported by an expansive network of fulfillment centers and sophisticated data algorithms that personalized shopping experiences for millions of customers worldwide. Beyond its direct retail operations, Amazon ingeniously expanded its economic footprint through Amazon Web Services (AWS), launched in 2006. AWS pioneered the commercialization of cloud computing services, providing scalable and cost-effective infrastructure solutions to businesses ranging from startups to global corporations. Today, AWS stands as a substantial revenue driver for Amazon, frequently contributing a significant portion of the company’s operating income due to its higher margin compared to retail. Furthermore, Amazon's ecosystem is bolstered by its Prime subscription model, which not only incentivizes customer loyalty with perks like free shipping and access to streaming services but also generates a steady flow of predictable income. These diverse revenue streams, supported by relentless innovation and customer-centric focus, underpin Amazon’s status as one of the most influential companies in the global marketplace.

View AMZN Analysis

AMZN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CN		Pinduoduo Inc NASDAQ:PDD	Add
CN		Meituan HKEX:3690	Add
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AR		Mercadolibre Inc NASDAQ:MELI	Add
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US	D	DoorDash Inc NASDAQ:DASH	Add
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KR		Coupang Inc NYSE:CPNG	Add

ZA	N	Naspers Ltd JSE:NPN	Select
CN		Alibaba Group Holding Ltd NYSE:BABA	Select
CN		Pinduoduo Inc NASDAQ:PDD	Select
CN		Meituan HKEX:3690	Select
UY		MercadoLibre Inc BMV:MELIN	Select
AR		Mercadolibre Inc NASDAQ:MELI	Select
NL		Prosus NV AEX:PRX	Select
US	D	DoorDash Inc NASDAQ:DASH	Select
CN		JD.Com Inc HKEX:9618	Select
KR		Coupang Inc NYSE:CPNG	Select

ZA	N	Naspers Ltd JSE:NPN	Add
CN		Alibaba Group Holding Ltd NYSE:BABA	Add
CN		Pinduoduo Inc NASDAQ:PDD	Add
CN		Meituan HKEX:3690	Add
UY		MercadoLibre Inc BMV:MELIN	Add
AR		Mercadolibre Inc NASDAQ:MELI	Add
NL		Prosus NV AEX:PRX	Add
US	D	DoorDash Inc NASDAQ:DASH	Add
CN		JD.Com Inc HKEX:9618	Add
KR		Coupang Inc NYSE:CPNG	Add

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AMZN

vs

S&P 500

Stocks Performance
AMZN vs S&P 500

Performance Gap
AMZN vs S&P 500

Performance By Year
AMZN vs S&P 500

Competitors Performance
Amazon.com Inc vs Peers

Amazon.com Inc
Glance View

Company

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AMZN vs S&P 500

Stocks Performance AMZN vs S&P 500

Performance Gap AMZN vs S&P 500

Performance By Year AMZN vs S&P 500

Competitors Performance Amazon.com Inc vs Peers

Amazon.com Inc Glance View

Company

Help

Tools

Stocks

AMZN

vs

S&P 500

Stocks Performance
AMZN vs S&P 500

Performance Gap
AMZN vs S&P 500

Performance By Year
AMZN vs S&P 500

Competitors Performance
Amazon.com Inc vs Peers

Amazon.com Inc
Glance View