Why I'm Holding Amazon Despite a 560% Run: The $2 Trillion Play You Can't Afford to Miss

Let me tell you, folks, there's a stock in my portfolio that's up 560% since 2016—and I'm not touching it. You guessed it: Amazon (AMZN). Critics will say, “Sell it, take profits!” But here's why I'm doubling down: this isn't just a company—it's a moat-ringed fortress in the global economy. Let me break it down.

First, the elephant in the room: valuation. The stock trades at just 28x next year's earnings, a steal for a company growing revenue at 10% annually and earnings at 17%. Sure, it's up 560%, but here's the kicker: analysts see a $260 price target by 2026—that's a 45% upside from today's price. ()

1. The Retail Empire That Keeps Expanding

Amazon isn't just surviving—it's dominating. With 220 million Prime members and a $247 billion online store business, this isn't your grandpa's bookstore. Here's the secret sauce:
- Third-party sellers now account for 60% of all items sold, creating a self-sustaining ecosystem.
- AI-driven recommendations are boosting sales by 20%+ in key categories.
- Global logistics? Amazon's got warehouses in 20 countries, cutting delivery times to one day for Prime members.

And let's talk physical stores: Whole Foods and Amazon Go sales hit $21.5 billion last year—a 6% jump. This isn't a fad; it's strategic.

2. AWS: The Cash Machine That's Just Getting Started

The real cash cow here is AWS, which just hit $107.6 billion in revenue—a 19% surge. With a 37% operating margin, this isn't just growth—it's profitable growth. Now, here's the kicker: AI is the new oil, and AWS is the refinery.

• Custom AI chips and data centers are being built now to handle the explosion in demand.
• Partnerships like its deal with Anthropic mean it's not just a cloud provider—it's a AI infrastructure giant.

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3. Advertising: The Third Leg of the Stool

Amazon's ad revenue hit $56.2 billion last year—a 20% jump. Why? Because people don't start shopping on Google anymore; they start on Amazon. The shift is seismic:

• 70% of product searches begin on Amazon's site, not Google.
• Sponsored listings and video ads are now a $60 billion business in 2025—and it's still growing faster than Google's.

4. The “Too Big to Fail” Factor

Let's get real: Amazon has survived three recessions since its 1997 IPO. When the economy tanks, people still buy groceries, stream shows, and rely on cloud services. This isn't a gamble—it's insurance.

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The Risks? Manageable.

• Tariffs and competition? Sure, Walmart and Costco are nipping at heels—but Amazon's Prime ecosystem is a loyalty chain that's hard to break.
• AWS margin pressure? Microsoft and Google are chasing, but AWS's lead is insanely wide.

The Math: $2.6 Trillion by 2030?

Analysts see Amazon's enterprise value hitting $2.6 trillion in eight years—double today's valuation. With revenue projected to hit $1.15 trillion and net income soaring to $131 billion, this isn't a dream—it's math.

Bottom Line: Don't Touch That Stock!

Here's the truth: 560% gains don't come around often. But Amazon isn't done. With AWS in AI's sweet spot, Prime's iron grip on consumers, and ad revenue on fire, this is a once-in-a-decade buy-and-hold.

If you're sitting on gains, don't sell—average down. If you're not in, get in now. Because when the next tech boom hits, Amazon won't just participate—it'll lead.

This isn't a prediction—it's a fact.