Amazon’s stock has surged over 150% from $85 in early 2023 to approximately $210 currently, driven by significant growth in its Amazon Web Services (AWS) and investments in artificial intelligence (AI). AWS revenue is projected to grow 19% year-over-year in 2024, generating $108 billion that year, and contributing about 40% to Amazon’s total EBITDA.
The company has committed around $75 billion to AI infrastructure in 2024, with expectations to surpass $100 billion in 2025. This investment includes a $54 billion allocation for its UK operations over three years, aimed at enhancing both warehouse and cloud services.
Amazon’s advertising segment achieved $56.2 billion in revenue in 2024, representing a 20% year-over-year increase. To double its stock price, Amazon needs to sustain over 20% growth in AWS, increase ad revenue to between $80–90 billion in the next two to three years, and manage risks such as regulatory scrutiny and competitive pressure from rivals like Microsoft and Google.
