I started investing in Amazon more than nine years ago.
The e -commerce, the cloud and the advertisement are still shooting on all cylinders.
It is still reasonable and has a lot of iron in the fire.
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I have invested in Amazon(Nasdaq: amzn) In early 2016. I only reduced my position once over the following nine years, and those remaining arrows now represent 9.1 % of my wallet. It is now my biggest contract with an unveiled profit of about 560 %.
With uncertainty about customs tariffs, interest rates and other overall opposite winds that shake the markets, it may seem time to sell a few shares. However, I am still not planning to trim my position in Amazon for four simple reasons.
Photo source: Getty Images.
As the largest e -commerce company in the world, Amazon hosts translated online markets in more than 20 countries and provides international shipping to more than 100 countries. Its paid initial service – which provides free discounts, shipping options, digital privileges and discounts in its stores in the Foods Comply Market – has been imprisoned more than 220 million subscribers around the world.
Retailing work ripens from Amazon, but its main ecosystem is incredibly sticky, and will continue to withdraw shoppers away from smaller retail dealers. In 2024, online store sales increased by 7 % to 247 billion dollars, with the actual store sales (Whole Foods and Amazon Go) increased by 6 % to $ 21.5 billion. In the first quarter of 2025, online store sales increased by 6 % on an annual basis.
This stable growth was driven by the expansion of the third party market, investments in the logistics network that strengthened delivery speeds, and spreading more artificial intelligence tools to enhance customer recommendations and operational competencies. These improvements must be expanded and generated by the long -term back winds.
Amazon creates most of its revenues from its retail work, but most of its profits come from Amazon Web Services (AWS), the largest cloud infrastructure platform in the world. AWS controls 33 % of the global cloud infrastructure market at the end of 2024, according to Canalys.
Microsoft Azure ranked second with a 20 % stake, followed alphabetGoogle cloud with 11 % stake.
In 2024, AWS revenues increased by 19 % to $ 107.6 billion. The operating margin also expanded about 10 degrees Celsius to 37 %. This strong growth indicates that its superior measure still gives it a lot of pricing power against its smaller competitors.
With the expansion of the artificial intelligence market (AI), more companies increase their spending on AWS cloud infrastructure to store more data and deal with artificial intelligence applications. To meet these needs, Amazon expands the emissions of the global data center, developing its custom -made artificial foil, and working with the emerging anthropologist from artificial intelligence to build new AI applications. Those dumps in the fire still make Amazon one of the simplest and most secure ways to benefit from the secular growth of public cloud markets and artificial intelligence markets.
Most investors get to know Amazon as an e -commerce and cloud company, but its enhanced lists, market ads, and digital media advertisements make it a giant advertising. In 2024, advertising revenues increased by 20 % to $ 56.2 billion, or 9 % of its higher line. According to Warc Media, this number can grow at least 7 % to $ 60 billion, or 9 % of its expected revenues, in 2025.
Amazon is now the third largest digital advertising company in the world after Google and Definition platformsAccording to Emarketer. This work should continue to prosper with more Internet users start searches for their Amazon products instead of Google.
From 2024 to 2027, analysts expect the Amazon revenues and arrow profits to grow at a compound annual growth rate (CAGR) by 10 % and 17 %, respectively. It also appears historically cheap in 28 times profits next year and 2.8 times sales next year.
Amazon’s assessments may be pressed in the short term by concerns about definitions and commercial wars, but they have already survived three periods of the main winds and other opposite winds since their general appearance in 1997. This flexibility, along with its clear catalysts for the future, will prevent me from selling their shares.
Before buying stocks in Amazon, think about this:
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*The stock consultant dates back from May 19, 2025
John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. Leo Sun has positions on Amazon and Meta platforms. Motley Fool has positions in and recommends Alphabet, Amazon, Meta Protects and Microsoft. Motley Fool recommends the following options: Long January $ 2026 $ 395 on Microsoft and Short January 2026 $ 405 calls on Microsoft. Motley Fool has a disclosure policy.
Why don’t I sell Amazon after publishing a 560 % gain originally by Motley Fool
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