- The Wall Street Journal reports that activist investor Daniel Loeb sees about $1 trillion in untapped value at Amazon.com Inc (NASDAQ:AMZN).
- Loeb's Third Point LLC counts the e-commerce major as one of its most significant holdings.
- Third Point, as of the end of 2021, had an Amazon stake valued at $784 million. The fund had a stake of roughly $608 million three months earlier.
- Loeb was encouraged by Amazon's share buybacks for the first time in a decade, and detailed financial results, including breaking out advertising revenue and detailing capital expenditures by category.
- Loeb feels that the market has failed to recognize the total value of Amazon's core e-commerce operation and its Amazon Web Services cloud unit.
- AWS has a so-called enterprise value of over $1.5 trillion, almost as much as the company's current market value of $1.6 trillion as per Loeb. Meanwhile, Amazon's retail business could be worth some $1 trillion.
- Third Point thinks a spinoff of AWS could help ease regulators' concerns about the company's market power.
- Amazon's cash cow AWS accounts for less than 13% of the revenue.
- Price Action: AMZN shares traded higher by 0.34% at $3,172.85 in the premarket on the last check Thursday.
