Amazon is a company of two sides - A high tech, high margin side, comprising its AWS, Advertising and subscription services segments; and its more traditionally known low margin, high volume stores and third-party seller segments.
These two sides form a cohesive whole. The Amazon online store motivates customers to purchase subscriptions and hosts its advertising. AWS underpins the functioning of the online store, but is also easy to integrate with for Amazon's many third-party sellers, encouraging adoption.
However, the different sides have different growth prospects. The high margin side will continue to experience high (15%+ annual) growth, while maintaining its relatively high profit margin (~30-40%), leading to strong profit expansion for Amazon as a whole.
Whereas the low margin, high volume side of Amazon will continue to grow at its fairly steady pace (5-10% annually) and continue to be limited by its low profit margin (<5%). Despite that, Amazon's unique business mix will result in overall yearly revenue gains of ~9% and net profit margins of ~15%, leading to revenues of ~$1T and earnings of ~$150B in 5 years.
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