Amazon stock reaches new all-time high due to strong performance in multiple segments.

From The Motley Fool: 2024-06-03 07:15:00

Stocks need to continuously hit new all-time highs to increase in value. Despite concerns, quality stocks tend to keep growing over the long term. Amazon recently hit a new high due to strong performance across its segments—North America, international, and AWS. With rapid revenue and profit growth, Amazon’s stock is poised for further gains in 2024.

Amazon’s e-commerce business is thriving, with segments like third-party seller services driving growth. In Q1, North American and international sales rose significantly. AWS also rebounded, with revenue and operating income up, marking its fastest growth rate since 2022. These results are fueling Amazon’s stock to new highs.

While Amazon’s stock is reaching all-time highs, its valuation may pose a challenge due to rising earnings and strong revenue growth. However, analysts predict continued earnings growth, making the stock appear cheaper than the forward P/E ratio suggests. With strong performance in Q1 and expected growth throughout 2024, Amazon is seen as a solid investment choice.



Read more at The Motley Fool: Amazon Stock Just Set a New All-Time High. Here’s Why I’m Still Buying.