Is Amazon.com (AMZN) Poised to Deliver Years of Solid Revenue Growth and Margin Expansion?

Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” February 2025 investor letter. A copy of the letter can be downloaded here. February was a volatile month for global equities due to the deluge of Trump headlines. However, the portfolio’s holding companies continue to press their advantages and execute on their growth opportunities. The Fund returned -1.0% net of fees and expenses for the month compared to -0.3% for its benchmark. Since its inception in December 2017, the Fund has returned 250.6%, compared to 136.1% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its February 2025 investor letter, Lakehouse Global Growth Fund emphasized stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was -13.19%, and its shares lost 8.08% of their value over the last 52 weeks. On April 8, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $170.66 per share with a market capitalization of $1.809 trillion.

Lakehouse Global Growth Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its February 2025 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) posted a solid quarterly result with ongoing cost discipline driving significant operating leverage across the business. Net sales grew 10% year-over-year (11% in constant currency terms) to $187.8 billion whilst operating income grew 61% to $21.2 billion, well ahead of guidance and analysts’ expectations. Growth within the core e-commerce business remained healthy as the company delivered a record breaking Black Friday and Cyber Monday holiday shopping event. For the past two years now, management has been laser focused on driving efficiencies across the retail operations and these efforts are continuing to pay off. Notably, retail margins for their international segment have now been positive for four straight quarters and currently sit at 3.0%, which is pretty remarkable considering that just over two years ago they sat at -8.9%.