Amazon: The Unstoppable Growth Stock Still an Unqualified Buy

Amazon (AMZN) has been on an unstoppable growth trajectory, with its stock hitting a new all-time high recently. Despite this impressive performance, Wall Street analysts remain bullish on the company, with 95% rating it a buy or strong buy. This article delves into the factors driving Amazon's growth and explores why it's still an unqualified buy.
Amazon's dominance in e-commerce and cloud computing has been a significant driver of its recent stock price surge. The company accounted for 38% of U.S. e-commerce sales in 2023, more than its next 15 largest competitors combined. Additionally, Amazon's cloud computing services, AWS, hold a 33% market share, far ahead of its closest competitors. In the third quarter of 2024, Amazon reported a 11% year-over-year increase in revenue, with AWS growth reaccelerating to 19%, its highest rate since late 2022.

Amazon's adoption of artificial intelligence (AI) and machine learning has further enhanced its operations and offerings. The company has been using AI for decades to streamline processes and create original text and images, potentially increasing productivity and profits. CEO Andy Jassy recently revealed that AWS has released nearly twice as many machine learning and generative AI features as other leading cloud providers combined in the last 18 months. This progress has helped reignite Amazon's cloud growth and positions the company as a quadruple threat in the tech industry.

Amazon's expansion into digital advertising and other emerging markets has also contributed to its recent stock price surge. The company's digital advertising segment increased by 19% in the third quarter of 2024, making it one of the company's fastest-growing businesses. Amazon's ads are displayed across various platforms, reaching a broader audience and driving more profits to the bottom line. Additionally, Amazon's entry into emerging markets, such as India and Southeast Asia, has expanded its customer base and increased its growth potential.
Analysts on Wall Street are bullish on Amazon's growth prospects, with key factors driving its growth and stock price appreciation including its dominant positions in e-commerce, cloud computing, and digital advertising. Amazon's early adoption and integration of AI across its businesses are expected to fuel growth, as well as its strong financial performance, with Q3 2024 revenue up 11% YoY and EPS up 52%.

In conclusion, Amazon's dominance in e-commerce, cloud computing, and digital advertising, coupled with its early adoption of AI, has driven its recent stock price surge and earned it an unqualified buy rating from 95% of Wall Street analysts. With a strong market position, robust growth, and a clear path to continued success, Amazon remains an attractive investment opportunity for growth-oriented investors.