Amazon Stock: Buy, Hold or Sell?

Core Viewpoint - Amazon's stock has seen significant recovery, doubling from around $84 to$200, driven by improved financial performance and growth in various segments [1] Financial Performance - In 2024, Amazon's revenue increased by 11% to $638 billion, with North America up by 10$36.9 billion to $68.6 billion, indicating strong cost management and operational efficiency [3] Operational Improvements - Amazon enhanced delivery speeds, delivering over 65$294 billion in 2024 to $1.772 trillion by 2032, with AWS holding a 30$14 billion in revenue in Q1 2025, up 18% year-over-year, indicating strong growth potential [9] E-commerce Outlook - The e-commerce segment may experience mixed performance, with opportunities to gain market share but facing competition from emerging players [10] Company Culture - Amazon's "Day 1" mentality emphasizes customer focus, innovation, and agility, which is crucial for maintaining competitiveness [11] Stock Valuation - Amazon's current price-to-sales (P/S) ratio is 3.3, which is within its historical range, suggesting the stock is neither a bargain nor excessively priced [12] Investment Implications - Strong results in 2024 highlight Amazon's execution capabilities, with AWS and advertising expected to drive future growth [13] - While the stock is not a strong buy, it is advisable for existing investors to hold, and long-term investors may consider gradually building a position [14]