Amazon Leverages AI for $132 Billion Annual Revenue Run Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- AI Technology Utilization: Amazon extensively applies AI across its e-commerce and cloud computing operations, optimizing delivery routes to reduce service costs and enhance operational efficiency, thereby driving revenue growth.
- Revenue Growth Highlight: Amazon Web Services (AWS) achieved a $132 billion annual revenue run rate in the latest quarter, showcasing the strong performance of its AI product portfolio and enhancing the company's competitive position in the market.
- Valuation Reasonableness: Despite the overall rise in AI stock valuations, Amazon's current price-to-earnings ratio stands at 29 times, significantly down from over 50 times two years ago, indicating that its stock remains attractive and reduces investment risk.
- Long-Term Growth Potential: Amazon's growth is not solely dependent on AI, as AWS offers a diverse range of products and services, ensuring that even if the AI market experiences fluctuations, the company's long-term profitability will not be severely impacted.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 234.340
Low
250.00
Averages
294.69
High
340.00
Current: 234.340
Low
250.00
Averages
294.69
High
340.00
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.
