Lottery vs. Investing
Approximately 50% of Americans play the lottery, spending over $100 billion annually, yet the odds of winning the Powerball jackpot are 1 in 292 million. In contrast, around 162 million American adults invest in stocks, with the S&P 500 delivering a 10% average annual return historically.
Amazon’s Financial Performance
Amazon’s recent quarter reported revenues exceeding $167 billion and net income of $18 billion. The company’s profit driver, Amazon Web Services, reached an annual revenue run rate of $123 billion, reflecting a 17% growth. Over the past three years, Amazon’s stock has climbed 80%, now trading at 34 times forward earnings estimates, positioning it favorably in the emerging AI market, which is expected to exceed $2 trillion.
Investment Recommendation
Investors are encouraged to consider Amazon for potential wealth-building, despite its recent omission from the Motley Fool’s “10 best stocks” list. Historical data from similar recommendations shows significant return potential, evidenced by past successes with stocks like Netflix and Nvidia.
