Amazon.com is the largest e-commerce company in the world. The CEO of this company is Jeff Bezos and in the last decade the company has grown in leaps and bounds. The revenue has grown by 9 times and this growth in the revenue is not just because of ecommerce but also due to cloud computing. This growth has also been considerably fueled by the introduction of new products.

Previously it has been observed that Amazon was only valued by the growth in revenue. However, things might change as the growth of this company slows down and the earnings become more crucial. If we look at the stock of the company, you will realize that it is much more expensive as compared to the price to sales ratio.

The biggest theme of the year 2018 was the result of the North American sector of Amazon. It greatly boosted the income growth of this particular company. The earnings amzn is able to give you a very good idea of the revenue generated by this company.

Cash flows

The cash flows help you to get a very good idea about the earnings of an organization. But there is no point being unnecessarily concerned with the cash flow because there is a huge money that Amazon spends each year. Make sure that you totally focus on the cash generated from the operations and this helps you to get an idea about the present operations of a particular company.

What are the three metrics to watch for in Amazon earnings?

Growth in revenue

When trying to analyze the growth of the company, it will be very difficult to take the earnings of Amazon into account. It has been observed that there has been a significant fall in the revenue for the last few quarters. It is therefore very important for the investors to look into the revenue that is expected to come in the coming quarters. In case there is a further decrease in the revenue of this company in the coming years, there are chances that it would raise a question mark about the growth of this company.

Growth in the web services of Amazon

The cloud computing business of Amazon plays a very important role in the revenue growth of Amazon. In the last quarter, this sector actually accounted for more than 50% of the operating income of the organization. AWS is a business that has a high profit margin, so it is important that the investors keep a check on the growth of this sector. It is important to find out if this sector will continue to grow even in the coming years.

The operating income

The operating income is another very important factor that should be taken into consideration, when the company's growth is to be measured. The operating margin has been widened as a result of which the operating income of the company has also been rising. It is therefore a good idea to highlight the strong operating leverage of the company and the operating income of this organization for the last few years. Due to the expansion of the operating margin this company have been enjoying a number of benefits. Especially this company has been doing very well in the e- commerce business of North America which boasts of an income that is even higher than the income generated by this company operating in the rest of the world taken together.

The earnings of this company in the first quarter of 2019

The stock market is basically considered to be the forward looking machine , so the reaction of the market on the earnings of Amazon, will provide you a guidance of the performance of the company in the first quarter of 2019 than on the results of the fourth quarter of 2018.

There is no point comparing the Marijuana stocks with the stocks of Amazon

Both the industries are very much different. Amazon has been around from the 1990's and this has been a part of an innovation called e- commerce. On the other hand, marijuana though is an illicit business has been there for a much longer time. The market size of Amazon is also much larger than that of marijuana.

The price of the stocks of a particular company may change from time to time and so it is important to analyze the earnings of the company in the last year before investing in the shares of the company.