![]() ![]() or global recession would send revenue at Amazon's largest operating segment (its online marketplace) into reverse, sustained double-digit growth at its ancillary operations can lead to a steady uptick in cash flow. Subscriptions provide high-margin, recurring revenue for the company.Īlthough it's quite possible a U.S. Amazon surpassed 200 million global Prime members in April 2021 and has assuredly added to this figure since gaining the exclusive rights to Thursday Night Football. Subscription services are another key segment for cash-flow generation. Despite bringing in just one-sixth of Amazon's net sales, AWS is regularly responsible for 50% to 100% of the company's operating income. Enterprise cloud infrastructure spending is still in its early stages of growth, and AWS accounts for nearly a third of global cloud infrastructure service market share, according to research firm Canalys. But what investors might be surprised to learn - and what's almost certainly intriguing these eight billionaires - is that the vast majority of Amazon's operating cash flow derives from its ancillary segments.Īmazon's most important operating segment is Amazon Web Services (AWS). online retail sales last year, which is over 8 percentage points more than its 14 closest competitors on a combined basis. eMarketer estimated that Amazon would account for just shy of 40% of U.S. Most people are familiar with Amazon because of its dominant online marketplace. This includes Jim Simons of Renaissance (8.2 million shares), Chase Coleman of Tiger Global (5.91 million shares), Steven Cohen of Point72 (3.21 million shares), Ole Andreas Halvorsen of Viking Global (3.2 million shares), Stephen Mandel of Lone Pine Capital (2.96 million shares), John Overdeck and David Siegel of Two Sigma (2.76 million shares), and Israel Englander of Millennium (2.7 million shares). The online giant enacted a 20-for-1 forward split in June 2022.Īltogether, eight billionaire investors piled into this popular FAANG stock. The third stock-split stock billionaires can't stop buying is e-commerce company Amazon ( AMZN -2.74%). Meanwhile, Prisma Cloud users are increasingly adding on to their initial purchase.īetween steady organic growth opportunities and the company's penchant for making bolt-on acquisitions, Palo Alto Networks is well positioned to sustain its double-digit growth rate. ![]() Next-generation security annual recurring revenue of $2.33 billion for the January-ended quarter surged 63% from the prior-year period. Also, SaaS solutions offer higher long-term margins than physical firewall products, and a subscription-dependent operating model should lead to less revenue lumpiness during product replacement cycles.īased on Palo Alto's operating results, its transformation is knocking it out of the park. For one, cloud-based SaaS software is typically nimbler and more effective at recognizing and responding to potential threats than physical products and on-premises solutions. There are a couple of reasons Palo Alto made this switch. Through the first six months of fiscal 2023, almost 79% of its sales have come from SaaS cybersecurity solutions, which is up 18 percentage points in less than five years. Palo Alto Networks is more than four years into an ongoing transformation that's seen the company focus on cloud-based software-as-a-service (SaaS) solutions and de-emphasize physical firewall products. Businesses with an online and/or cloud presence require protection in any economic environment. Hackers don't take time off from trying to steal sensitive data just because Wall Street hits a rough patch. ![]() Jim Simons at Renaissance was the big buyer (1.06 million shares), along with Ken Griffin at Citadel (838,840 shares), Jeff Yass at Susquehanna (596,380 shares), John Overdeck and David Siegel at Two Sigma (421,813 shares), and Israel Englander at Millennium Management (331,665 shares).Īmid plenty of volatility and uncertainty on Wall Street, the beauty of cybersecurity stocks like Palo Alto is that they provide a near-necessity service. ![]() A half-dozen billionaire fund managers were busy mashing the buy button during the fourth quarter. ![]()
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