After reporting earnings last week, Amazon.com (NASDAQ: AMZN ) is looking more like a retailer, and less like a tech giant. The company's merchandise sales jumped as a percentage of revenue last quarter, with very little help from extra media or cloud-service sales.
In the following video, Fool contributor Demitrios Kalogeropoulos argues that Amazon's lofty stock valuation depends on healthy growth from those non-retail portions of its business. Still, the good news for the company is that merchandise sales are getting more profitable. Gross margin is rising while shipping costs fall, making Amazon's core business as strong as ever.
Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.