From Yahoo Finance: 2025-04-16 07:10:00

Amazon, once a book-selling startup in the 1990s, has grown into a tech giant offering a wide array of products and services. Despite recent market volatility, the stock has shown a remarkable 10,310% return in the past 20 years. With a focus on customer satisfaction, Amazon’s revenue has skyrocketed 617% in the last decade to $638 billion, with growth projections of 9.7% annually.

The company’s success is driven by its presence in various tech sectors like cloud computing, online shopping, streaming, and advertising. Amazon’s emphasis on cost efficiency has led to a 462% increase in operating income over the past two years. Its large scale creates a competitive advantage in supply chain operations, and its marketplace benefits from a network effect.

Amazon Web Services, the leading cloud computing platform, enjoys a cost advantage and technical edge. However, challenges such as regulatory scrutiny, fierce competition, labor relations, and macroeconomic factors must be considered. Despite these risks, investors can buy Amazon stock at a discounted price, trading below its historical price-to-sales ratio.

While Amazon remains a top-performing company, investors should weigh the risks associated with its dominant position in the market. The Motley Fool Stock Advisor team has identified 10 promising stocks for investment opportunities, with Amazon not among them. However, Amazon’s historical performance and reasonable valuation make it a compelling option for investors looking for long-term growth potential.



Read more at Yahoo Finance: Should You Buy Amazon Stock Right Now and Hold for the Next 20 Years?