AMZNAmazon.com, Inc.

Amazon is a retail marketplace with its own logistics, yet the profit comes from AWS and from advertising on its own storefront.

Retail supplies most of the revenue and almost none of the margin: it is warehouses, delivery and price competition. A substantial share of sales comes not from Amazon's own inventory but from third-party sellers, who pay commissions plus storage and fulfilment fees — a markedly more profitable stream than first-party sales. The Prime subscription ties delivery, video and music together and keeps the shopper inside.

AWS is the world's first and largest cloud operator. At roughly a sixth of revenue it produces the bulk of group operating profit, which is why its growth rate governs how the market treats the stock. The third fast-growing source is advertising: sellers pay for placement on the storefront itself, where the shopper has already arrived intending to buy.

The weak points are capital intensity and cyclical exposure. Warehouses, transport and data centres demand continuous investment, and retail demand falls with consumer spending. Regulatory pressure targets the terms offered to third-party sellers and the bundling of Prime with the marketplace. The company pays no dividend, directing cash into growth instead.