The Bull Market Keeps Growing: 4 Reasons to Buy Amazon Like There's No Tomorrow

Core Insights - Amazon has demonstrated strong stock performance, with a year-to-date increase of approximately 48% and over 150% growth in the past five years, indicating its position as a market leader in the current bull market [1] Group 1: Cloud Computing Leadership - Amazon Web Services (AWS) holds a leading position in cloud computing with a market share of about 31%, surpassing Microsoft Azure at 20% and Google Cloud at 12% [6] - AWS revenue grew by 19% year over year, with income surging 49%, driven by the explosive growth of artificial intelligence (AI) [6] - Amazon is actively investing in AI opportunities, including the development of custom AI chips for training large language models and enhancing its SageMaker and Bedrock platforms [3][4][7] Group 2: E-commerce Dominance - Amazon remains the largest online retailer, continuing to perform well despite the slowing growth in the retail sector [12] - The North American retail segment saw a revenue increase of 9% year over year, while international revenue grew by 12% [13] - Investments in automation and AI have improved warehouse efficiency and shipping route planning, leading to a 33% year-over-year increase in operating income for the North American segment [14][15] Group 3: Investment and Valuation - Amazon has a forward price-to-earnings (P/E) ratio of approximately 36.5, which is considered attractive compared to historical levels prior to 2023 [17] - The company has a history of investing heavily to drive growth, positioning itself to capitalize on significant opportunities in AI and cloud computing [10][11] - Amazon's operating income from AWS reached $36.4 billion over the past 12 months, highlighting its profitability compared to other segments [12]