From Nasdaq: 2024-05-10 04:00:00

Amazon (NASDAQ: AMZN) had a strong first quarter, with revenue increasing 13% to $143.3 billion and EPS tripling to $0.98. The company’s focus on artificial intelligence (AI) is generating excitement among investors.

Despite losing cloud market share to competitors, Amazon Web Services (AWS) saw revenue grow 17% to $25 billion in the first quarter. AWS’s revenue growth is accelerating due to increased demand for generative AI.

Amazon is investing in AI across its business, offering AI chips, SageMaker, and Bedrock. The company also developed AI apps like Amazon Q and Agents, which are gaining traction among customers.

With a forward P/E ratio of 41.5 and promising outlook for AI, Amazon’s stock is still a solid buy. The company has a history of successful new ventures like AWS, and AI presents a significant growth opportunity for Amazon.

The Motley Fool Stock Advisor team identified 10 top stocks for investors, but Amazon wasn’t one of them. Stock Advisor has a history of outperforming the S&P 500 and providing valuable stock picks for investors. Investing in Amazon now could lead to substantial returns in the future.



Read more at Nasdaq: After Strong Q1 Results Powered by Artificial Intelligence, Is Now the Time to Buy Amazon Stock?