From Nasdaq: 2024-04-14 11:00:00

Amazon’s (NASDAQ: AMZN) stock has surged by 45% in the last six months and 22% year-to-date, reaching a market cap of $1.93 trillion. E-commerce and cloud computing optimism are boosting shares to new highs.

Despite 100% growth in the last five years, Amazon’s e-commerce and global retail operations are still expanding rapidly. With North American sales up 12% and international operations up 11% in 2023, there is room for growth in the online shopping sector.

Amazon Web Services (AWS) remains profitable, with $90 billion in sales and 27.1% operating income in 2023. Revenue acceleration in the cloud computing division and partnerships in AI services signal future growth potential in 2024 and beyond.

Estimating Amazon’s potential in five years involves forecasting growth in e-commerce and AWS. Projecting 12% annual growth and 10% profit margins for e-commerce and 27% for AWS could lead to $105 billion in earnings by 2028, hinting at future stock price increase.

While not a member of the 10 best stocks to buy now, Amazon shows growth potential for long-term investors. The Stock Advisor service provides guidance on portfolio building and stock picks, delivering returns higher than the S&P 500 since 2002.



Read more at Nasdaq: Where Will Amazon Stock Be in 5 Years?