Amazon recently joined the $2 trillion club, making it one of the most dominant companies in the world. With three compelling reasons to buy Amazon stock, investors should take a closer look.
Firstly, Amazon Web Services (AWS) is seeing a resurgence in growth. As the largest cloud computing provider, AWS’s revenue increased by 17% year-over-year in the first quarter, showing promising signs of acceleration. With AWS contributing 62% of Amazon’s profits, continued growth could lead to increased profitability for the company.
Secondly, Amazon’s overall profitability is on the rise. With efforts to become more profitable, the company’s North America and International divisions have seen improvements in operating margins. As margins continue to improve and revenue grows, Amazon is well-positioned to outpace competitors.
Lastly, Amazon’s advertising division is thriving, with revenue of $11.8 billion in the first quarter, marking a 24% increase from the previous year. This division is growing at a faster pace than AWS and is contributing to Amazon’s overall profit margins.
Overall, Amazon’s success across multiple divisions, including advertising and cloud computing, positions it as a strong investment opportunity. For investors looking to capitalize on Amazon’s continued growth and success, now may be the ideal time to consider adding Amazon stock to their portfolio.
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https://finance.yahoo.com/news/3-brilliant-reasons-buy-amazon-111500884.html