Amazon is predicted to be the first $10 trillion stock, driven by diverse revenue streams and growth potentials.

From Nasdaq: 2024-11-28 03:45:00

Three technology stocks – Apple, Microsoft, and Nvidia – have reached market capitalizations of $3 trillion. Earnings growth in the tech sector has been exceptional, with a focus on AI innovation driving shareholder gains. Amazon (NASDAQ: AMZN) is poised to be the first company to hit a $10 trillion market cap, driven by profitable e-commerce, subscription, and advertising revenue streams.

Investors have seen trillion-dollar market cap milestones, but Amazon’s potential for a $10 trillion valuation stands out. The company’s diverse revenue streams, including Prime subscriptions and advertising, could lead to $100 billion in earnings potential. Cloud computing giant AWS is a key contributor to profits, expected to grow with the rise of AI spending.

Amazon’s potential to generate $300 billion in earnings by 2030, driven by various business segments and expanding profit margins, positions it as a frontrunner for a $10 trillion market cap. With a P/E ratio of 33, comparable to Apple and Microsoft, Amazon’s momentum and growth prospects make it an attractive investment opportunity.

The Motley Fool’s Stock Advisor team identified 10 top stocks for investors, excluding Amazon. Stock Advisor has a track record of outperforming the S&P 500 and providing valuable stock picks. Consider the potential returns from investing in companies like Nvidia, which saw substantial growth from previous recommendations. John Mackey of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool.



Read more at Nasdaq: Prediction: This Hypergrowth Stock Will Be the First $10 Trillion Stock (Hint: It’s Not Nvidia)