Amazon's Exponential Growth

Amazon is reporting first quarter earnings next week, but to get the big picture of the company’s growth trajectory we mapped its historical financials against an exponential trend line forecasted out two years. For fun, we also added in consensus estimates for Amazon’s 2012 and 2013 revenue.

The results were remarkable. Amazon’s revenue growth from 2005 to 2011 closely tracks the exponential trend line. In fact, it actually jumped above it last year. If the growth holds, Amazon will generate in excess of $80 billion by 2013.

It may be the result of a burgeoning Kindle network effect. As Amazon gets the devices in more consumers’ hands, it becomes their one-stop shop for all things media—they can buy ebooks, download apps, or stream movies and TV shows through Amazon Prime, not to mention browse and purchase anything else in Amazon’s massive merchandise offerings. 

Click here to read our note on Kindle economics →

Click here to read our update on the Kindle ecosystem →

Amazon Revenue Trend Forecast

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