Investor holds onto Amazon stock after 560% gain, bullish on company's growth prospects

From Nasdaq: 2025-05-23 17:30:00

In early 2016, an investor purchased Amazon (NASDAQ: AMZN) shares, which now make up 9.1% of their portfolio with an unrealized gain of about 560%. Despite market uncertainty, they are not planning to sell due to the company’s strong performance and potential growth opportunities.

Amazon’s retail business continues to grow, with online store sales reaching $247 billion and physical store sales at $21.5 billion in 2024. The company’s expansion of its third-party marketplace and investments in logistics and AI tools are driving stable growth and long-term tailwinds for its retail segment.

AWS, Amazon’s cloud business, saw revenue grow 19% to $107.6 billion in 2024, with an operating margin of 37%. As the AI market expands, more companies are turning to AWS for cloud infrastructure, positioning Amazon to benefit from the growth of the public cloud and AI markets.

Amazon’s advertising business generated $56.2 billion in revenue in 2024, making it the third-largest digital advertising company globally. With a projected revenue of $60 billion in 2025, Amazon’s advertising segment is poised for further growth as more users conduct product searches on the platform.

Analysts expect Amazon’s revenue and earnings per share to grow at a compound annual growth rate of 10% and 17%, respectively, from 2024 to 2027. Despite near-term valuation concerns, Amazon’s historical resilience and future catalysts make it a compelling investment opportunity for long-term growth.

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Read more at Nasdaq: Why I’m Not Selling Amazon After a 560% Gain