"Amazon and Alphabet are two of the biggest companies in the world, ranking as the fifth and fourth largest, respectively. Conventional wisdom states that as these companies become larger, it becomes more difficult for them to grow at a rapid rate. However, both of these companies have put up respectable growth rates that are often quicker than the broader market."
"Both Amazon and Alphabet draw a significant portion of their revenue from consumer-facing products. For Amazon, its commerce divisions are obviously affected by the strength of the consumer. If we hit an economic downturn or recession, Amazon's sales are sure to tank. In Q2, 60% of Amazon's sales came from its North American commerce divisions with an additional 22% coming internationally."
Amazon and Alphabet rank among the world’s largest companies and continue to post growth rates that can outpace the broader market. Both derive sizable revenue from consumer-facing businesses: Amazon from commerce and Alphabet from advertising, making both vulnerable to economic downturns. In Q2, 60% of Amazon's sales came from North American commerce and 22% internationally, while Google advertising generated $71.3 billion of Alphabet’s $96.4 billion quarter revenue. Revenue growth may stall in weak conditions, but Amazon’s AWS produced 53% of operating profits while representing 18% of revenue, offering profit resilience through cloud services.
Read at The Motley Fool
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