Tomahawk, WI 10/14/2013 (BasicsMedia) – Amazon.com, Inc. (NASDAQ:AMZN) is one of the most interesting companies and stocks you will come across. It has emerged to become the leading online retailer in the entire world. It specializes in retailing a wide variety of items which anyone can order for and pay using any of AMZN’s websites. The company’s margins, while looking forward to the next earnings reports for the latest quarter, are expected to be better than they have been thus far in the last one year. Which factors are responsible for making AMZN enjoy these incredible earnings?

 Relationship between AMZN’s Revenues and Margins

Normally, there is a sort of tension between AMZN’s revenues and margins. When one is doing well, the other appears to be struggling. It is often rare to find a situation where the two are in harmony and are showing good results simultaneously. But there are times when both AMZN’s revenues and margins perform wonderfully thus leading to an improved stock. The company has maintained its position as one of the best in terms of offering retail services. This has been aided somewhat through the release of Kindle which continues to bring in more revenue for AMZN.

 AMZN’s Largest Market Remains North America

The largest market for AMZN continues to be North America which now accounts for the biggest percentage of what the company makes in revenue. The sales in North America have not risen steadily by around 30% over the last one year and now that we are heading to the holiday season, which is often very good for AMZN, the figure is expected to continue rising more than it has done up to this point. The revenue which AMZN earns from its international businesses, have also seen an increase of more than 13% in the last 12 months, and the trend will continue.

Amazon.com Inc always launches new hardware from time to time. This trend will be maintained in the next 12 months thus playing a major role in boosting AMZN’s margins. When the company announces its financial results for 2013, I expect the revenue not to be less than $74 billion, which will be in keeping with the trend in the last one year or so. Wall Street analysts appear to believe that the revenue will be around $74.7 billion by end of 2013. However, the margins will be better, as I expect this to improve from 26% to 27% when results are published.

AMZN’s revenues will experience an 18% year on year growth in the next 12 months. This could be lower than what analysts and investors have come to expect with AMZN stock, but it is not all doom and gloom. What often frustrates investors with AMZN is the fact that the company is still posting losses. This will possibly happen in the next 12 months, just like it has been the case for quite some time now. But despite the losses, AMZN remains one of the most attractive stocks for varied reasons. Its continued investments in innovation guarantee long term success.

AMZN is not consistent when it comes to earnings, but this should not worry any investor because the future looks good. AMZN does not currently have a more serious competitor with the capability of eating into a significant portion of its market share.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.