Amazon's Future Growth Potential Remains Significant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Market Penetration Potential: Amazon's retail business is nearing $600 billion in revenue, yet approximately 80% of global retail sales still occur in physical stores, indicating significant growth potential for e-commerce as the market gradually shifts online.
- Cloud Computing Advantage: Amazon Web Services (AWS) currently has a revenue run rate of $142 billion, while 85% of global IT spending remains on-premises, highlighting that the cloud computing market is still underpenetrated with substantial future growth opportunities.
- Competitive Moat Construction: Amazon has established a strong competitive moat through its brand recognition, substantial infrastructure investments, and network effects, enabling it to withstand competition and continue growing in both e-commerce and cloud computing sectors.
- Investment Timing: Amid current market volatility and macroeconomic factors, long-term investors may find this an opportune moment to buy Amazon stock, as the company is expected to outperform the market over the next decade.
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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: 249.020
Low
175.00
Averages
280.01
High
325.00
Current: 249.020
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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