Investment Opportunities in Cloud Computing Leaders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 15 2026
0mins
Should l Buy AMZN?
Source: Fool
- Cloud Market Share: Amazon and Microsoft hold the first and second positions in the cloud computing market, achieving year-over-year growth rates of 39% and 24% respectively, indicating strong market demand and profit potential, especially amid surging AI needs.
- Profitability Boost: With substantial investments in data centers, both Amazon and Microsoft are expected to realize high-margin revenue growth, enhancing their financial performance, particularly as AI technology remains underutilized across industries.
- Attractive Stock Valuation: Currently, both Microsoft and Amazon trade at forward price-to-earnings ratios in the low 30s, representing a significant discount to recent levels, providing investors with a rare buying opportunity not seen in recent years.
- AI Demand Outlook: Research by The Motley Fool indicates that less than 20% of businesses currently utilize AI, a figure expected to skyrocket in the coming years, driving demand for cloud computing services and further solidifying the market positions of these two companies.
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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: 210.570
Low
175.00
Averages
280.01
High
325.00
Current: 210.570
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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See More
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