Amazon and Shopify's Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- AWS Revenue Surge: Amazon Web Services (AWS) achieved a remarkable 28% revenue growth in Q1 2026, marking its highest growth in nearly four years, indicating that aggressive investments in data center infrastructure are yielding significant returns and are expected to accelerate further.
- E-commerce Strength: Amazon's North American operating income surged by 43% despite a 12% sales increase, showcasing the efficiency gains from its leadership in robotics and AI, which enhances its competitive edge in the e-commerce market.
- Shopify's Market Opportunity: With a forward price-to-sales ratio below 8 and projected revenue growth of around 30% by 2027, Shopify is well-positioned for significant growth, particularly in agentic commerce, where its catalog supports the universal commerce protocol (UCP) co-developed with Alphabet, providing reliable data for AI agents.
- Payment Processing Growth: Shopify generates revenue through its software platform and payment processing services, achieving a higher attach rate for its payment solutions, which helps drive growth among both small and large merchants, further solidifying its market position.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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