David Paul Morris | Bloomberg | Getty Images
Amazon CEO Jeff Bezos (l) as well as Fiat Chrysler chairman John Elkann walk the grounds at the Allen & Co. Media as well as Technology Conference in Sun Valley, Idaho, on July 12, 2018.
Amazon has become a more active corporate investor in recent years — as well as at which point its investment portfolio is actually worth $1 billion for once.
Amazon disclosed in its latest quarterly report which which at which point owns $1 billion worth of stock in public as well as private companies, as of the end of the second quarter. which’s up 60 percent through the year-ago period’s $623 million as well as a 163 percent increase through the $380 million which disclosed inside the same quarter of 2016. Compared to early 2015, which’s almost a fivefold increase in value.
The growth in Amazon’s investment portfolio is actually the latest sign of the e-commerce giant becoming more aggressive with external investments. The change comes as the company has become more profitable as well as cash rich — as well as acquisitive — in recent years.
“While Amazon hasn’t inside the past actually been focused on equity investments, which seems like which’s taking a lot more interest in investing in additional companies, both public as well as private,” said Thomas Ruchti, an accounting professor at Carnegie Mellon University.
Amazon disclosed which $593 million of the $1 billion investment is actually in public company equity as well as equity warrants which give which the right to purchase company stock inside the future. The additional $407 million worth of stock comes through privately held companies. inside the same period of last year, $338 million of the investment value came through public company stock, with private company shares accounting for $285 million.
Amazon didn’t provide details of the individual investments or holdings in each company. however which has announced investments worth roughly $400 million in two public companies in recent years: fuel cell maker Plug Power as well as air cargo provider Air Transport Services Group. which’s also been part of funding rounds for more later stage startups, such as voice-powered sales software company Tact as well as cancer-detection start-up Grail, which typically require larger investments.
Amazon didn’t respond to a request for comment.
“which’s safe to say which Amazon is actually active in venture capital investing, as well as their investments – like many inside the current market — are increasing in value,” said Jarrad Harford, a finance professor at the University of Washington.