Why Amazon (AMZN) Stock Is Up 10% In Just a Month: More To Come?

Amazon.com Inc. (NASDAQ: AMZN) is a good growth stock investors should keep an eye on.

Although the e-commerce giant has helped compound investor capital considerably, it shouldn’t be taken as a mega-cap stock in potential investment returns. Interestingly the stock is in growth mode and currently trades at a reasonable valuation to long-term prospects.

In 2020, the company had revenue of $386 billion. Although this may look awful, it’s vital to note that retail sales globally are approximately $25 trillion per year, and in the US, it is $6 trillion. However, e-commerce accounts for only $4 trillion globally and 1 trillion in the US. In the coming years, e-commerce will grow, with retail sales increasing to 22% by 2024 from 18% in 2020. Therefore, there is potential to grow sales in the long term. Besides e-commerce, the company generates revenue from cloud computing, a market currently growing faster than even e-commerce. The stock looks to have strong fundamentals, and although there will be some downturns from time to time, it is still a stock investor should watch.

Uson Abdilazhanov

Editor and Computer Expert A hardcore tech enthusiast and computer expert Uson Abdilazhanov who holds a degree in communications started writing in his personal blogs since 2012. That time he was interested in the technical part of the computer. But now the software aspect plays an important role in his career. Currently, he runs a PC building and repairing shop which helps a lot of designers and gamers who always like to try new things.