From Nasdaq: 2024-06-30 10:49:35

Amazon’s stock has surged to an all-time high with a $2 trillion market cap, driven by its AI potential and margin improvements under CEO Andy Jassy. Operating margins have significantly increased across North America, International, and AWS segments. The company is positioning itself for future growth and profitability.

One reason to be bullish on Amazon is its shift towards higher-margin services and away from direct retail sales. AWS, under Jassy’s leadership, is embracing AI capabilities, setting the stage for long-term growth. Amazon’s valuation, though higher than competitors like Microsoft and Alphabet, reflects its strong growth potential and future earnings growth rate.

Another reason to consider Amazon as a buy is its potential in open-source models for AI. While AWS may lag behind Azure and Google Cloud in closed-source models, its support for open-source projects positions it well for the market shift towards open-source AI applications. This strategic move could help AWS maintain its leading market share in cloud computing.

Wall Street analysts unanimously recommend buying Amazon stock, with an average price target of $221.70 per share, indicating a 14.72% upside potential. Analyst Michael Morton is particularly bullish on Amazon, highlighting the company’s transition towards higher-margin services and AWS’s growing AI capabilities. Amazon’s robust growth outlook and AI potential make it an attractive long-term investment.



Read more at Nasdaq: 3 Reasons to Be Bullish on Amazon (NASDAQ:AMZN) Stock