Amazon’s Stock Performance and Business Growth
Amazon’s stock (NASDAQ: AMZN) has seen less than 50% growth over the past five years, underperforming compared to other tech giants. Currently, it holds a forward price-to-earnings (P/E) ratio of 32, significantly higher than last year’s low of 24, yet it remains low historically. Despite its sluggish stock price, there’s potential for growth as Amazon’s retail operations continue to increase revenue and profits.
In Q4, Amazon Web Services (AWS) reported a 24% year-over-year revenue growth, marking its fastest growth rate in over three years. Meanwhile, Amazon’s chip division has a revenue run rate of $20 billion, with strong internal use pushing the figure closer to $50 billion. Additionally, the company reported a North American operating margin of 9% in Q4, an increase from 8% a year prior, driven by advancements in robotics and AI.
