Nibbled Amazon.com, Inc. (NASDAQ: AMZN)

 

The share price of Amazon.com, Inc. (NASDAQ: AMZN) tanked by more than 10% today after reporting a loss of US$3.8 billion in 1Q 2022 compared to profits of US$7.7 billion in 1Q 2021, registering slow growth and falling short of market's expectations.

What worries investors are the free cash outflow of US$18.6 billion for the trailing 12 months compared to free cash inflow of US$26.4 billion for the trailing 12 months ending 31 Mar 2021.

I am loving this great opportunity as Amazon is another great big tech business that I have been eyeing for a long time.

Its dominance in the e-commerce world, cloud computing space, video streaming and advertisement business gave itself a strong economic moat unrivalled by most companies. I believe Amazon will thrive and continue growing at least for the next decade. Its investments into new computing infrastructure and warehouse distribution systems to grow its dominance in AWS cloud service provider arena and e-commerce supply chain result in great negative cashflow for the past year but such investments will definitely generate hefty recurrent cashflows in the long-run.

Using Syfe Trade platform, I nibbled 0.1 share of Amazon to initiate a tiny position.

This tiny 0.1 share will become 2 shares after 3 Jun 2022 because of the 20-for-1 stock split.

I am happy to start my investment in Amazon and will continue to add more shares in the coming weeks and months to ride on the proliferation of internet economy - e-commerce and cloud computing.

Thanks for reading. Stay safe and be strong as always. 

With love & peace, 

Qiongster