1 Incredible Stat About Amazon's Business That Could Send Its Stock Soaring

Core Insights - Amazon has a robust business model that has generated significant returns for shareholders, with operations extending beyond its online marketplace [1] - The company continues to innovate and expand, indicating strong future growth potential [2] Financial Performance - Amazon Web Services (AWS) is the primary driver of profitability, contributing 62.7% of total operating income, with an operating income of $11,547 million [4] - AWS revenue has increased by 21% to $29.3 billion over the past five quarters, while operating income has surged by 61% [5] - The North America segment generated $5,841 million (31.7%) and the International segment $1,017 million (5.5%) in operating income [4] Valuation and Market Position - Amazon's stock is currently trading at a price-to-earnings (P/E) ratio of less than 35, which is considered a bargain given the growth potential of AWS [9] - Despite a market cap of $2.2 trillion, there is still considerable upside for the stock as AWS continues to drive growth [9] - Year-to-date, Amazon shares are down more than 5%, attributed more to economic concerns than the company's solid business performance [10] Long-term Outlook - With diverse operations, strong margins, and ample growth opportunities, Amazon is viewed as a safe long-term investment [11]