Amazon owns 30% of the cloud computing market and 38% of the US electronic commercial market.
The development of the company into artificial intelligence (AI) cloud services and advertising is already paying off.
Amazon stocks are not cheap, but it looks good in terms of the company’s long -term options.
10 shares we like more than Amazon ›
These days, investors can choose growth campaigns, especially because of increased interest in artificial intelligence (AI). However, not all growth stocks are young technology companies. Some are established players who have dug broad ditches in their business. And one of the best long -term growth stocks is the household name: Amazon(Nasdaq: amzn);
The company continues to expand its income and revenue, supports an enviable example of e -commerce, and even benefits from the increase in AI. That’s why it is worth spending $ 1,000 to buy Amazon shares.
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Amazon has been such a dominant leader of the electronic commercial market over the years that it can be easy to forget how far it really is before competition. Amazon currently owns 38% of the US electronic commercial market and its closest competitor, competitor, Walmarthas just over 6%. Amazon’s ability to attract online customers, give them good customer service and make their shopping experience quite seamless, so the company in the US has 180 million main members (and 220 million worldwide).
This huge customer fund has led to the permanent growth of Sales of Electronic Commerce in Amazon, and the last quarter of North America has increased by 8% to nearly $ 93 billion. And it is likely that more growth will come. The company’s management is leading that sales will increase by almost 9% per year to $ 161.5 billion and in the middle of recommendations.
Many people probably don’t think about Amazon as AI, but it’s really useful because of the increasing need for artificial intelligence services. Amazon Web Services (AWS) is a leading public cloud computing provider with 30% of the market and then sequence Microsoft with 21%.
This means that companies of all shapes and sizes use AWS for their data center services, including AI -oriented opportunities to help companies use and create their own AI services. Amazon’s example in the cloud computing helps her enter the Ai Cloud Services market that Goldman Sachs It is estimated that by 2030 Will be $ 2 trillion dollars.
To evaluate Amazon AI potential in perspective, think that in the first quarter of this year, Amazon AWS operated $ 11.5 billion – -11.5 billion dollars – double the amount She earned from her North American e -commerce segment. In order to survive before the competition, Amazon said it would increase its capital spending this year (Capex) spent to $ 100 billion, and most of it would get into AI infrastructure.
And the last but not least is the huge possibility of Amazon advertising. While many companies are currently panicked about how AI could increase their advertising income, Amazon is useful to integrate their ads into their electronic commercial platform and video broadcasting services.
The result is nearly $ 14 billion in the first quarter, which is 18% more than a quarter of the year and the fastest growth of any Amazon business income. The management said that during the first quarter’s earnings, the company’s ads were allowed to reach 275 million people in the US alone.
This is a huge audience with which Amazon has access, and the company’s ability to sell ads throughout the developing video stream content library and electronic commercial platform means that advertising can be the main growth of Amazon for the coming year.
Amazon stocks are not completely cheap and the price to force ratio is about 35 compared to S&P 500SP/E ratio 28. However, the company’s predominantly in the cloud computing and e -commerce should continue to provide Amazon’s leg to increase its competition.
In addition, Amazon is useful as the AI grows and is just starting to use its advertising capabilities, the company has proven that it knows how to expand its supply to increase new growth. If the reps of the previous company and its current capabilities are some indicators, Amazon is still the highest value of growth shares that is now worth buying.
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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Board of Motley Fool. Chris Aliger has no position in any of the above shares. Motley fool is a position and recommends Amazon, Goldman Sachs Group, Microsoft and Walmart. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
Currently Motley Fool has initially released the largest growth stock you will now buy with $ 1,000