Amazon, one of the five companies in the $2 trillion club, is seen as a strong investment option. With three key reasons why it’s a good buy right now, investors should consider adding Amazon stock to their portfolios.
Firstly, Amazon Web Services (AWS), the largest cloud computing provider, saw a 17% increase in revenue in the first quarter, surpassing expectations. With AWS providing 62% of profits despite accounting for only 18% of total revenue, its growth is a significant factor in Amazon’s profitability.
Secondly, Amazon’s overall profitability is on the rise, driven by efforts to become more profitable across its divisions. The North America and International divisions have shown improvements in operating margins, leading to record cash flow for the company.
Lastly, Amazon’s advertising division is also experiencing substantial growth, with revenue increasing by 24% in the first quarter. This division, while smaller than AWS, is growing at a faster pace and contributing to Amazon’s overall profitability.
With successful launches in various divisions and ongoing projects in areas like pharmaceuticals and artificial intelligence, Amazon’s track record of innovation and success makes it a compelling investment opportunity. Overall, Amazon’s current performance and future potential make it a strong buy for investors looking to capitalize on its continued growth.
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https://www.fool.com/investing/2024/07/10/3-brilliant-reasons-to-buy-amazon-stock-right-now/