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Amazon (NASDAQ:AMZN) stock might not be the “whisper on the wind”, but its recent quieter presence in the headlines does not diminish its worth. Despite a 77% surge in the last year, the optimism surrounding Amazon is far from reaching its zenith, making it a hidden treasure trove for savvy investors.
While Amazon’s AI endeavors have been overshadowed by other tech giants in the industry, recent developments shed a positive light on its AI initiatives.
In February, Amazon surprised investors with its robust quarterly earnings, surpassing market expectations for revenue and earnings. Plus, CEO Andy Jassy’s optimistic outlook on integrating generative AI into Amazon Web Services (AWS) sparked hope for substantial revenue growth in the future.
Despite worries that AI might hinder AWS’s growth, Amazon’s management projects that generative AI can drive “tens of billions” in additional revenue over time.
Furthermore, the implementation of gen AI is set to elevate the performance of Amazon’s e-commerce platform, as highlighted by InvestorPlace’s David Moadel. Additionally, Amazon’s utilization of AI technology in its digital advertising business continues to expand, showcasing its commitment to enhancing operational efficiency.
Beyond AI: Non-AI Forces Fueling AMZN Stock
While AI promises growth and profitability, Amazon’s non-AI ventures play a crucial role in driving AMZN stock forward. One recent milestone is Amazon’s collaboration with Eli Lilly (NYSE:LLY) to support the direct-to-consumer sales of Zepbound, illustrating the company’s foray into the pharmacy industry.
Though this partnership might not be a game-changer, its success could pave the way for more collaborations with pharmaceutical giants, consolidating Amazon’s position as a disruptive force in the pharmacy sector.
Moreover, Amazon’s efficiency measures from the past year continue to yield positive results, enhancing its bottom line and bolstering its financial standing.
Investor’s Delight: AMZN Stock, A Timeless Treasure
Market analysts are well-attuned to Amazon’s growth trajectory, with a consensus predicting a 43.5% increase in earnings for the current year and an additional 29.5% growth by 2025. Progress in generative AI could further instill confidence in Amazon’s continued earnings surge.
Amidst these developments, Amazon’s inclusion in the Dow Jones Industrial Average could solidify its reputation as a stable blue-chip stock, offering investors a reliable long-term investment opportunity.
In conclusion, the message is crystal clear. AMZN stock is not just another option; it’s a gem waiting to be unearthed, beckoning investors to seize this “magnificent” opportunity.
AMZN stock proudly holds an A rating in Portfolio Grader.
On the date of publication, Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
