Why Amazon Is Up 25% This Year

Core Insights - Amazon.com Inc. has seen a 25% increase in stock price in 2024, outperforming the S&P 500's 10% rise and other tech giants like Microsoft and Alphabet [1] - The company's success is attributed to its strong position in e-commerce and cloud computing, particularly through Amazon Web Services (AWS) [1] E-commerce Performance - Amazon remains the largest e-commerce company globally, with no significant competitors emerging to challenge its dominance [1] - The decline of brick-and-mortar retail further solidifies Amazon's leading position in the market [1] Cloud Computing and AI - AWS reported a revenue of $25 billion, reflecting a 17% year-over-year increase, with an operating profit of $9.4 billion, up 84%, and an operating margin of 38% [1] - Although Amazon's AI capabilities are considered moderate, management anticipates significant contributions from generative AI in the coming years [1]