Amazon Inc's business strategy lately seems to be focused on cloud computing.
Internet merchandising remains the cash flow engine of the company, but the focus now is on the Infrastructure as a Service cloud computing business Amazon is active in. The predominant part of Amazon's profitability comes from cloud computing where the net profit margins are above 20 % even. While, in the online trading business Amazon Inc in its international business is still loss making. US online merchandising is only slightly profitable.
The Infrastructure as a Service market will be 700 billion USD revenue a year market in 7 years time, according to various analysts forecasts.
Amazon Inc holds the lead in the cloud computing market with 30 % market share.
Amazon Inc is undervalued. Amazon Inc intrinsic value is 4 trillion USD on the promise of cloud computing.
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