Amazon-This Magnificent Stock Has Made Many Millionaires -- and Could Make More

Core Insights - Amazon has delivered an extraordinary return of 233,100% since its IPO in 1997, making it a highly successful investment for long-term investors [2] - The company has significant growth potential in both its e-commerce and AWS segments, with e-commerce still representing only about 16% of all U.S. retail sales [4][6] E-commerce Growth - Amazon's e-commerce sales grew by 9% year over year in North America and 12% internationally, totaling approximately $131.5 billion in the latest quarter [4] - More than 70% of Amazon's e-commerce revenue comes from North America, indicating substantial international growth opportunities [5] AWS Performance - AWS accounts for about 17% of Amazon's total revenue but contributes 60% of its operating income, highlighting its profitability [6] - AWS grew by 19% year over year in the third quarter, and the cloud-computing market is expected to more than triple in size by 2032, suggesting a bright future for AWS [7] Profitability Focus - Under CEO Andy Jassy, Amazon has prioritized efficiency, resulting in nearly doubled operating margins over the past five years [9] - In the most recent quarter, Amazon's net income per share increased by 44% year over year, and free cash flow grew by 123% [9] Valuation Perspective - Despite a market cap of$ 2.4 trillion and a forward P/E ratio of 39, the combination of growth potential and margin expansion may justify the stock's valuation [10] - Amazon is often perceived as lacking growth potential due to its size, but it still has considerable room for expansion in the coming years [11]