Amazon: Model Update (2024)

Disclosure: I own Amazon January 2025 $55 Call Options

Last year, I posted a more detailed work on Amazon in which I provided more in-depth discussion on the structure of my Amazon model that I am going to discuss today. If you find it hard to follow the discussion below, I suggest you read last year’s piece and/or download the model to see how I have worked through these numbers. As mentioned yesterday, I have updated my Amazon model and the intention is to leave some brisk thoughts after updating the model.

Let’s start with Amazon’s revenue model.