Amazon (NASDAQ:AMZN) has seen significant growth in the current AI-driven bull market, with a strong momentum that has led to all-time highs. CEO Andy Jassy’s focus on higher-margin services and cost-cutting measures has resulted in improved operating margins, making the company more profitable.
The shift towards open source models in AWS could help Amazon maintain its position as a leader in cloud computing against competitors like Microsoft and Alphabet. The potential for Amazon’s future EPS growth rate is higher than its competitors, making its valuation look more attractive in the long term.
Wall Street analysts are also bullish on Amazon, with an average price target of $221.70 per share and no recommendations other than “Buy.” Analyst Michael Morton sees positive trends in Amazon’s shift towards higher-margin services, predicting future revenue and profit growth.
Overall, Amazon’s strong growth prospects, focus on profitability, and leadership in AI technology make it a promising investment for the future. With its current valuation reflecting its potential for further gains, Amazon remains a likely long-term winner in the market.
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