From Nasdaq:

Amazon stock (NASDAQ: AMZN) quietly gained 81% in 2023, adding roughly $700 billion in value and rebounding from the 2022 bear market. Tech stocks soared last year, with the Nasdaq Composite finishing up 43% and the Nasdaq 100 jumping 54% higher. Amazon’s profits surged in 2023 as CEO Andy Jassy focused on profitability. The company is poised for further growth in 2024.

Strategically, Amazon cut costs and saw its operating margin soar in 2023. In the third quarter alone, operating income reached $11.2 billion, compared with $2.5 billion in the previous year. Amazon’s CEO, Andy Jassy, seems poised to continue driving Amazon’s profit higher with various business moves aimed at leveraging earlier investments, plus the expected benefits of adding advertisements to Prime Video and more.

Because Amazon’s profits surged in 2023, its valuation hasn’t expanded as you might expect, meaning the stock is still pricey. However, Amazon still has room to expand its margins, especially as its revenue shifts to its higher-margin businesses. The company’s investment and participation in artificial intelligence (AI) remain key factors that could further drive its future growth. Even without a major breakthrough in AI, Amazon has enough competitive advantages based on its e-commerce business and AWS to keep growing without leading in AI.



Read more: Will Amazon Stock Keep Soaring in 2024?