Part 4/7:
Despite the recent stock fluctuations, both Moser and his co-analyst, Emily Flippen, advocate for maintaining a long-term perspective on Amazon. They assert that while the company is diversified—with significant growth coming from Amazon Web Services (AWS), now at a $26 billion run rate compared to $18 billion a year ago—the concerns primarily stem from the retail side of the business.
Flippen raises a point of concern regarding the growth trajectory of Amazon Prime subscribers, questioning whether the market has reached a saturation point. With the annual subscription priced at $119, there are growing worries about whether the company can maintain its momentum in acquiring new subscribers, especially as the market for families sharing accounts becomes more constrained.