💼 Amazon’s (NASDAQ:AMZN) dominance in both e-commerce and cloud computing makes it a must-have for any investor. With a commanding 32% market share in cloud, Amazon is outpacing competitors like Microsoft and Google. Its $85 billion annual R&D investment dwarfs those of rivals, reinforcing its leadership in a cloud market projected to reach $2 trillion by 2030.
📊 Amazon’s latest quarterly results showcased strong performance, with a 10.2% YoY revenue growth, despite a minor miss on top-line expectations. Adjusted EPS nearly doubled from $0.65 to $1.26. Notably, the company’s operating margin surged from 5.7% to 9.9%, fueling an impressive $11.3 billion free cash flow in Q2. This robust financial position allows Amazon to reinvest heavily in growth and innovation.
🚀 AWS, Amazon’s cloud division, reported 19% revenue growth, showcasing its accelerating momentum. Meanwhile, the company’s rapidly expanding digital advertising business delivered 20% YoY growth, making it a key player even at this scale. Amazon’s unmatched U.S. e-commerce market share is expected to exceed 40% by 2025, solidifying its leadership.
💡 Recent partnerships with AI startup Anthropic, which aims to generate $1 billion in revenue this year, and the integration of Meta’s Llama 3.2 models into AWS Bedrock, highlight Amazon’s commitment to innovation. These initiatives enhance Amazon’s cloud capabilities and position it to tackle complex AI challenges.
💰 Over the past 12 months, Amazon’s stock has rallied by 47%, outperforming the broader market. With analysts forecasting a 9.6% revenue CAGR for the next decade, Amazon’s stock has a 43% upside potential, driving its fair value close to $3 trillion. In short, Amazon’s unmatched positioning and strong financials make it a compelling buy for long-term investors.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.