Amazon.com Inc.

The stable outlook on Amazon reflects our expectation for strong cash flow generation, continued investment in growth, and that business conditions will remain favorable for online retailers and major cloud computing firms over the next two years. We anticipate growth rates will be among the highest for the entire retail industry and remain robust for AWS, which continues to rapidly grow. Amazon's cash balances and a financial policy that eschews dividends or regular share repurchases also support the rating and outlook in light of ongoing capital spending requirements for growth. Although we acknowledge heightened scrutiny in many regions surrounding the impact of tech firms on economies and individuals, we have not assumed any outcomes of future actions by governmental or

...Amazon.com Inc. will maintain a leading online market share despite intensifying competition across key business segments. Amazon has rapidly grown its retail revenue thanks to its first-mover advantage in creating and sustaining customer expectations for ease of purchase and fast, free delivery for the fee-based Prime loyalty program, which has over 100 million paying members. Although Amazon has been a catalyst for consumer mindset shifts, large retail competitors such as Wal-Mart and Target are demonstrating success in meeting consumers' higher expectations. However, Amazon continues to maintain a leading market share in the e-commerce segment, given its well-diversified worldwide operations and heavy investment in technology and distribution. First-mover advantage at Amazon Web Services (AWS) remains intact, offering access to raw computing and storage capacity to customers of all sizes. AWS has continued to spend billions of dollars annually to expand its service offerings, complement...

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