Warren Buffett recommends Amazon as an excellent choice for investment with significant growth potential.

From Nasdaq: 2024-11-28 06:50:00

Warren Buffett is selling stocks and holding onto his favorites like Apple, even after selling a large portion. Amazon is one of his smaller positions, up 127% in the past five years. Buffett admitted to missing out on Amazon and not understanding its model, but the stock is still an excellent choice.

Amazon’s stock price has remained in the low triple digits since a 20-for-1 split two years ago. Despite Buffett’s initial hesitation, Amazon has been a valuable addition to the portfolio. With a P/E ratio of 43, the stock is cheaper than ever and offers significant growth potential, especially in generative AI.

Amazon’s use of generative AI is driving significant growth, particularly in its AWS cloud computing services. The company continues to innovate in e-commerce, streaming, and advertising, all while maintaining a profitable business model. Investors are encouraged to consider Amazon as an attractive investment opportunity with robust growth prospects.

Consider investing in Amazon, a top stock with strong growth opportunities. The Motley Fool Stock Advisor team has identified 10 other stocks with potential for monster returns. Stock Advisor has outperformed the S&P 500 since 2002 and provides investors with a blueprint for successful investing. Investing in Amazon could offer significant returns in the future.



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