From Yahoo Finance: 2025-05-17 11:03:00

Amazon is a strong choice for a diversified portfolio, with e-commerce and cloud businesses generating massive revenue. Dollar-cost averaging is recommended for adding Amazon or any stock during uncertain times. However, it’s wise not to put your entire nest egg in a single stock but to diversify with ETFs like Vanguard S&P 500. Amazon’s long-term potential is solid, operating in robust industries with a history of innovation. The company’s e-commerce revenue reached $530 billion last year, with $28.8 billion in operating income. AWS, Amazon’s cloud segment, generated $108 billion in sales and $39.8 billion in operating profits in 2024. Despite its success, Amazon faces challenges in the global economy, impacting free cash flow and stock performance. While Amazon is a valuable addition to a portfolio, it’s important not to rely solely on one stock for long-term success, especially during uncertain economic conditions. Diversification is key to mitigating risk and volatility in the market. Investing in Amazon through dollar-cost averaging can help maximize returns and reduce risk over time. To learn more about successful stock investments, consider joining Stock Advisor for expert recommendations on companies poised for growth. John Mackey, former Whole Foods Market CEO and Amazon subsidiary, is a board member of The Motley Fool. Analysts highlight “Double Down” stock recommendations for potential high returns. Consider diversifying your portfolio with Amazon but be cautious of market conditions and timing your investments carefully for long-term success.



Read more at Yahoo Finance: Could Buying Amazon Today Set You Up for Life?