From Nasdaq: 2024-04-05 07:27:00

Amazon (NASDAQ: AMZN) is off to a strong start this year, with a 20% rise in stock value. Factors like improving gross margins and the potential recovery of AWS in 2024 make it a promising buy. The stock is still below previous valuation levels, indicating room for growth. Analysts see more upside for Amazon in 2024.

Gross margins have been boosted by Amazon’s growing service divisions, like AWS and advertising services. AWS, which faced challenges in 2023, is expected to recover in 2024 due to increasing demand for cloud computing products. Improved cost controls and larger deals are expected to drive growth for AWS and, in turn, Amazon’s stock.

Despite its valuation increasing, Amazon remains below its historical trading levels, offering potential upside for investors. The company’s focus on cost controls and revenue growth, particularly in AWS, indicates room for further valuation growth. With these factors in play, Amazon’s stock could present opportunities for investors in 2024.



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