Chamath Palihapitiya, Founder and CEO of Social Capital pitched Amazon.com as the next $3 trillion company at the Sohn 2016 Conference. Below are the slides from the speech.

SEE THE FULL CONFERENCE HIGHLIGHTS HERE-> LINK

To build an ecosystem that advances humanity by solving the world’s hardest problems

?We are technologists and entrepreneurs who have helped build and scale many of today’s best companies

?We are investors in many of the fastestgrowing private technology companies in the world

There’s a new sheriff in town…

31% per annum on $1.3B…

SO WHAT’S THE BIG IDEA?

There is a multi-trillion dollar monopoly hiding in plain sight

10x in 10y

Amazon.com

AMZN will be a $3T company by 2025

24% IRR

Retail will be a $1T business by 2025

?AWS will be a $1.5T business by 2025

?Bets and cash will be worth $0.5T by 2025

SHOW YOUR WORK!

Retail will be a $1T business by 2025

Amazon Customer Growth (M)

……………….

AWS will be a $1.5T business by 2025

The best spend a large percentage of their revenues on infrastructure

 

Amazon.com AWS……………………

Over time the rest will find it economically unfeasible to build their own infrastructure

Costs on AWS are best in class at much smaller scale

…………….

100% of Social Capital portfolio companies are running on AWS

AWS will have a big business in existing workloads…

…and the majority of new workloads…

…because AWS expands the market

…………….

“Your margin is my opportunity”

…………….

? Infrastructure spend comes in two types: Test + Dev and Production

………..

Test + Dev workloads will rapidly shift to the cloud in the next 10 years

………..

Bets and cash will be worth $0.5T by 2025

…………..

?$239B of value created in 10 years from $18B invested

………..

?33% compounding

………….

$96B invested @ 15% vs 33% historically

2025 enterprise value created = $163B

And the surplus cash from 2015 – 2025? ?$362B…

Amazon.com – See the full slide deck below

palihapitiya_sohn