Amazon is a top growth stock with strong potential in various segments.

From Nasdaq: 2024-11-27 04:28:00

Growth stocks, like Amazon (NASDAQ: AMZN), have outperformed value stocks recently, with the S&P 500 Growth index returning 37.9% over the last year. Amazon has shown strong growth potential, with sales increasing from $148 million to $470 billion since its IPO in 1997.

Amazon’s cloud-computing business, AWS, has been a key profit driver with sales growing over 19% to $27.5 billion. AWS maintains a market-share lead of 31% in the rapidly growing cloud-computing sector, ahead of competitors like Microsoft’s Azure and Alphabet.

Amazon’s other segments, North America and international, have also seen growth in sales, driven by online retail operations, Prime subscription services, and advertising. Amazon’s stock has gained 125.8% in the last five years, trading at a premium valuation compared to the S&P 500.

Investors may consider investing in Amazon for its leading market position in a fast-growing segment, particularly in AWS. The company’s stock Advisor service has a track record of success, providing guidance on building a portfolio and stock picks that have outperformed the S&P 500 since 2002.

Amazon wasn’t listed among the 10 best stocks to buy now by the Motley Fool Stock Advisor analyst team. Investors may want to consider other opportunities that could yield significant returns, as demonstrated by past recommendations like Nvidia, which saw substantial growth.



Read more at Nasdaq: The Smartest Growth Stock to Buy With $3,000 Right Now