Prediction: This Will Be Wall Street's First $10 Trillion Company -- And It's Not Apple

Core Viewpoint - Amazon is positioned to be the first company to reach a $10 trillion market cap, surpassing competitors like Apple, Microsoft, and Nvidia due to its dual growth engines in e-commerce and cloud computing [2]. Group 1: Growth Engines - Amazon operates in two significant sectors: e-commerce and cloud computing, both of which are expected to grow into multitrillion-dollar opportunities [4]. - E-commerce currently accounts for less than 20% of retail sales in the U.S. and is projected to continue its growth trajectory [4]. - Amazon's combined sales in North America and internationally exceeded $500 billion over the last 12 months, with expectations to double and surpass $1 trillion in revenue [5]. Group 2: Cloud Computing Potential - The cloud computing market is being significantly enhanced by artificial intelligence, expanding its addressable market beyond the previously estimated $1 trillion [6]. - Amazon Web Services (AWS) is projected to grow from $112 billion in revenue, with a clear path to reach $200 billion and eventually $300 billion over the next decade [7]. Group 3: Margin Expansion - Amazon's operating margin was 11% over the last 12 months, with potential for significant margin expansion compared to competitors like Microsoft, which has a 45% margin [8]. - AWS has an operating margin nearing 40%, and the growth of higher-margin segments such as advertising and subscriptions is expected to lift Amazon's overall profitability [9]. Group 4: Market Cap Pathway - Amazon's revenue is anticipated to reach $2 trillion, with a projected operating margin of 20%, resulting in $400 billion in operating earnings [11][12]. - A market cap of $10 trillion with $400 billion in earnings results in a reasonable earnings ratio of 25, supporting the valuation [12]. - Amazon's clearer revenue growth path positions it favorably to achieve the necessary earnings for a $10 trillion market value over the next decade [13].