Amazon's Expanding Empire
Amazon is in an incredibly unique position at the moment. Firstly, let me break down some facts. Amazon makes a majority of its revenue from e-commerce, with the second-biggest portion of Amazon being its cloud service, AWS. Its market cap is currently sitting at $2.3 trillion. It has consistently beaten all recent estimated earnings, has around a 9% margin across all it sells in all sectors, and holds $93 billion in cash.
Amazon’s future is looking bright, even without looking at these numbers — and here’s why.
1. Strength in Diversification and Cash
Amazon is incredibly diversified across many industries. It’s in e-commerce, logistics, technology, entertainment, and more. This means that in the event of an AI boom turning into a bust, as I expect to happen, Amazon will survive — and it will survive more comfortably than its competitors.
Its large cash reserves also allow it to adapt to problems that arise along the way. If the secret to AGI has been discovered, and there is no longer a reason to pursue it, guess what — they can still use their data centre capacity for the cloud.
They can always make money from this AI boom.
These two strengths — diversification and liquidity — make Amazon one of the most resilient companies in the world.
2. Expanding Into High-Potential Markets
Beyond its core businesses, Amazon is quietly setting itself up to dominate a number of industries.
Entertainment: Amazon Prime Video, Music, and Books are expensive to maintain, but Amazon can afford to run them at lower profits because other areas of the business subsidise them. Competing with Netflix or Disney is difficult when they’re using entertainment revenue — while Amazon is using retail, cloud, and logistics money. When a recession hits (and entertainment consumption usually rises), Amazon can afford to go on the offensive.
Logistics: Amazon is replicating its AWS playbook — but this time with delivery. Spare capacity in shipping containers or vehicles is rented out, reducing waste and generating extra revenue. You may have already noticed non-Prime packages being delivered by Amazon — proof that this strategy is expanding fast.
Healthcare: While Amazon’s medical ventures are new, its potential in pharmaceuticals is huge. As living costs rise, a low-cost online marketplace for medication could grow rapidly — especially with Amazon’s existing logistics and customer trust.
Twitch: Though currently unprofitable, Twitch shines during recessions as engagement and ad revenue spike. It’s another piece of diversification that could pay off long-term.
All of these ventures strengthen Amazon’s ecosystem and open doors for future dominance. The company doesn’t have to be number one in all of them yet — but it’s positioning itself to be.
3. Weathering the Next Recession
I believe that in the next five years, there will be an incredibly damaging recession — driven by AI disruption, BNPL defaults, unemployment, rising government debt, and more. Banks will struggle as the non-payment cycle hits back, and many companies won’t make it through.
But Amazon will.
It might not soar during this period, but it will survive, and survival will be the key advantage. Once the downturn passes, Amazon can lead the next boom cycle, returning to its former highs — and then exceeding them.
Final Thoughts
But hey, I’m no financial guru or investment broker. I simply read their recent earnings, looked at what industries they’re working in, and used my life experience to make this judgment call.
We’ll see if I’m right or wrong about this.
Thursday, 16th October 2025
