Since its IPO in 1997, Amazon’s stock has surged 230,000%. The company is a leader in various sectors, with a market cap of $2.4 trillion. While future returns may not match past gains, Amazon remains a strong investment with a P/E ratio of 36.7. Analysts project a 100% increase in operating income this year.

Amazon’s success is fueled by multiple growth drivers, including online shopping, digital advertising, and cloud computing through AWS. The company benefits from a wide economic moat, with strong network effects and cost advantages. CEO Andy Jassy has prioritized efficiency, leading to projected growth in operating income. Amazon’s dominance and financial strength make it a standout company.

Investors have seen tremendous gains from Amazon in the past, but future returns may not be as spectacular. While Amazon’s stock has climbed 891% in the last decade, expectations for another 100-fold increase in the next 10 years may be unrealistic. However, with a reasonable P/E ratio and strong fundamentals, Amazon could still outperform the market in the long term.

Considerations before investing in Amazon include Stock Advisor’s list of top stocks, which excludes Amazon. Historical recommendations like Netflix and Nvidia have yielded significant returns. Stock Advisor’s average return of 1,048% outperforms the S&P 500. While Amazon has been a wealth generator, diversifying into other high-potential stocks could lead to even greater returns.

Read more at Nasdaq: If You Buy Amazon With $10,000 in 2025, Will You Become a Millionaire in 10 Years?