Amazon (NASDAQ: AMZN) reported a 9% sales growth in Q1 2023, although overall performance has underwhelmed compared to the S&P 500 over the past five years. However, since 2022, Amazon’s shares have more than doubled, primarily due to strong performance in high-margin sectors like advertising and cloud computing. Advertising revenue grew 19% year over year, contributing to $58.3 billion in high-margin revenue over the last year. Amazon Web Services (AWS) generated $111.8 billion in trailing-12-month revenue, growing 17% year over year last quarter.
The company has deployed over 750,000 robots in its fulfillment centers since 2012 to enhance efficiency and reduce costs. Recent advancements in robotics and AI technology are expected to further optimize operations, particularly in its new Shreveport, Louisiana fulfillment center. Analysts project that Amazon’s earnings will grow 16% annually over the next several years, despite heavy investments in infrastructure that could lead to fluctuating profitability.
