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Amazon’s Growth Projections
Amazon (NASDAQ: AMZN) is currently valued at $2.37 trillion and could potentially reach a $5 trillion market capitalization by the end of 2030. This would represent a 111% increase from its current levels, as investors focus on growth segments such as Amazon Web Services (AWS) and advertising.
Performance of Key Segments
In Q1 of the current year, AWS revenue grew by 17% year over year with an operating margin of 39%, contributing 63% of Amazon’s operating profits despite making up only 19% of total sales. Advertising was the fastest-growing segment, with an 18% revenue increase year over year. To achieve the $5 trillion valuation, Amazon would need an operating income of $200 billion by 2030, requiring substantial growth from these segments.
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