Amazon has seen incredible growth and remains a solid bet for 2025

From Nasdaq: 2024-12-20 05:00:00

Amazon (NASDAQ: AMZN) has seen incredible growth, with its stock up over 200,000% since its IPO, turning a $1,000 investment into over $2 million. The company’s dominance in e-commerce and cloud computing has made it a valuable asset, but will it continue to be a winning stock in 2025?

In the third quarter, Amazon’s revenue rose 11% to $158.9 billion, driven by strong performance in its cloud computing business, AWS, which saw a 19% increase in revenue to $27.5 billion. The company’s margins are expanding as high-margin businesses like AWS, marketplace, and advertising outpace overall growth.

Looking ahead to 2025, Amazon’s AI strategy is a key focus area. The company has invested billions in AI chatbot technology and cloud infrastructure to stay competitive. While Amazon’s e-commerce and cloud computing businesses remain strong, its AI efforts will be crucial for future growth and innovation.

Amazon’s current P/E ratio of 50 suggests fair valuation with strong profit growth potential. The company’s continued investment in AI and dominance in e-commerce and cloud computing make it a solid bet for 2025, but its market cap and earnings multiple may limit upside potential.

While Amazon remains a top performer, the Motley Fool Stock Advisor team identified 10 other stocks for investors to consider for potential monster returns. Their track record of success and guidance on building a successful portfolio make their recommendations worth considering before investing in Amazon.



Read more at Nasdaq: Is Amazon a No-Brainer Stock to Own in 2025?