From Nasdaq:

Amazon has impressed consumers with its two-day shipping, a service first launched through its Prime subscription service in 2005. The company has also significantly increased e-commerce revenue from 2004, mostly through North America. However, with a low operating profit margin in North America, most of Amazon’s profits come from its cloud computing platform, Amazon Web Services (AWS).

AWS is highly profitable and a significant part of Amazon’s operating profit, contributing 74% of the operating income in YTD 2023. Meanwhile, the company continues to expand its offerings, attracting business customers through cloud services, including AI and machine learning.

Amazon’s vast e-commerce platform has unlocked other profitable ventures, including advertising. A recent move by the company to display ads on Prime videos is projected to increase revenue and potentially boost profit margins, leading to higher operating profits for the company.

Amazon’s ongoing growth in AWS and advertising is expected to lead to higher operating profits in the future. Hence, while e-commerce itself might generate low profits, it is a critical means that has allowed Amazon to branch out into other profitable ventures, making the company a good stock to buy.

Amazon continues to be a good stock to buy. Their offering has been instrumental in propelling the e-commerce firm into success. This is evidenced by its ongoing growth in AWS as well as advertising, which is expected to lead to higher operating profits in the future. While not generating a high profit margin for e-commerce, the platform has allowed Amazon to explore other profitable ventures. They revealed ten stocks for users to buy, and Amazon made the list – aside from 9 stocks users might overlook.



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