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Key Points
Amazon (NASDAQ: AMZN) experienced a 44% increase in stock price over the past five years, significantly trailing the S&P 500‘s approximate 86% return. This period included a near 90% spike following a market dip in March 2020, but performance stagnated for much of 2021 and fell by 50% in 2022.
Despite recent struggles, Amazon continues to thrive in its primary revenue sources, notably Amazon Web Services (AWS), which yielded operating margins exceeding 30%, while the overall e-commerce segments reported single-digit margins. The cloud computing industry is projected to grow at a 20% compound annual growth rate (CAGR) through 2030.
Overall, the five-year performance may reflect timing issues rather than a decline in growth potential for Amazon, as the company has a strong foundation for future growth.
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