Where Will Amazon Stock Be in 3 Years?
Amazon's (NASDAQ: AMZN) business has changed dramatically in the past few years. The e-commerce giant has more than doubled its shipping infrastructure since 2021, expanded its cloud services division, and boosted profitability. Those successes helped push the stock to all-time highs at a valuation of $2 trillion as of mid-October.
It's hard to see how the next several years could bring as much good news to shareholders. But Amazon still has a long runway ahead for both growth and profit expansion. With that positive fact in mind, let's look into the factors likely to drive Amazon's stock returns over the medium term.
Most of the recent enthusiasm around the stock can be tied to Amazon's success in the Amazon Web Services (AWS) platform that powers most of its earnings. Companies slowed their pace of new spending commitments on cloud services in 2022, but they're now back to aggressively moving work onto the cloud. That's great news for AWS, which nearly doubled its earnings in the first half of 2024. Operating income jumped to $19 billion, year over year.
Source Fool.com
