Amazon (NASDAQ: AMZN) continues to impress both customers and shareholders with its first-quarter 2024 revenue and earnings per share beating Wall Street estimates. As a result, shares have surged 25% this year.
With a market cap of nearly $2 trillion, Amazon remains one of the most valuable businesses globally. Despite its size, Amazon’s growth prospects are still promising. The company’s advertising business, competing with heavyweights like Alphabet and Meta Platforms, saw a 24% increase in ad sales in Q1, reaching $11.8 billion.
In addition to its advertising success, Amazon’s e-commerce business is thriving, with online shopping expected to grow by 11% annually until 2030. Amazon, with a 40% online market share, is well-positioned to capture a significant portion of this growth.
Furthermore, Amazon Web Services (AWS), the leading cloud platform with a 31% market share, saw a 17% revenue increase in Q1. AWS is not only profitable but also a key player in the industry, especially as demand for AI services grows.
Despite historically low profits, Amazon’s operating income soared by 219% in the first quarter of 2024, showing improved financial performance. CEO Andy Jassy emphasized the importance of balancing customer experience with efficiency improvements, highlighting Amazon’s commitment to sustainable growth.
While Amazon’s stock has risen by 126% since the beginning of 2023, its current price-to-sales ratio of 3.4 is in line with its historical average, making it an attractive investment opportunity for growth-oriented investors.
In conclusion, Amazon remains a top growth stock to consider investing $1,000 in right now. Its strong financial performance, diverse revenue streams, and reasonable valuation make it a compelling choice for long-term investors.