Amazon’s Growth Prospects and Valuation Update
Amazon’s current market capitalization stands at approximately $2.4 trillion, with analysts predicting a rise of 25% to reach $3 trillion within the next 12 months. The company’s operating income is projected to surge by 26% between 2025 and 2026, driven by robust interest in its AWS cloud platform and digital advertising services, which generated $65 billion in revenue over the past year.
Amazon’s capital expenditures are expected to total $125 billion this year as it expands its data center capacity. The company’s enterprise-value-to-earnings-before-interest-and-taxes ratio is currently near a 10-year low, indicating potential for valuation expansion, despite only a 4% increase in stock price this year.
