Is Amazon A Good Stock To Buy In 2024? Absolutely!
December 20, 2023
Is Amazon a good stock to buy? Well, Amazon is one of the excellent stocks that you can get your hands on in 2024. Amazon stocks are a little gift that you may give yourself for this new year.
It is not big of a surprise that Amazon has been one of the best performing stocks that can be there. In fact, it is one of the stocks that keep outperforming itself throughout the decade. Therefore, it is one of the best rewards that you can get your hands on.
However, when it comes to stocks, you can never guarantee their future performance based on their past. While the company may not have performed as well as it did in the previous years, a little birdy told me that there is a high chance that Amazon stocks may outperform in 2024.
So, let’s get to know why is Amazon a good stock to buy in 2024!
About The Brand
Amazon was established as only an online bookstore in 194 by its founder, Jeff Bezos. It was among the very first companies which was selling and buying products online.
In its pretty early years, Amazon used to operate from Jeff’s garage in Bellevue.
The organization had officially made its debut in October 1995. In just two months, the brand made a record of earning $20,000 per week in sales. In 197, the brand went public for the first time with $18 for a share listing on Nasdaq.
However, this was many years before Amazon actually started off making profits. In their fourth quarter of 2001, Amazon posted a profit of $5 million.
The brand continued introducing newer products over the years. They started offering multiple services. That includes Amazon Prime in the year 2005, the Amazon Kindle in 2007, and Alexa and Echo in 2016.
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Amazon Stocks After The Covid Pandemic
There is no point discussing why is Amazon a good stock to buy unless we talk about Amazon’s struggle post the covid pandemic. Amazon eventually came out with the Corona pandemic, but with many issues on its back. The company was completely bloated, had more than enough staff, and was spending a little too much money as the consumers had suddenly started moving offline and went back to in-person shopping.
To recover from this, Amazon had cut down over 25,000 jobs, canceled a number of high profile projects, and even temporarily stopped the construction of their second headquarters in Arlington, Virginia.
While these kinds of decisive moves were pretty painful, they allowed Amazon to move on from the pandemic and get the business back on track. This had a clear reflection on their financial results of the third quarter.
By the end of October, Amazon had reported stellar earnings which clearly showed the growth acceleration throughout the company. Specifically, Amazon has reports of its earnings per share of 94 cents, which was an expectation to be 58 cents.
On Wall Street, the total revenue was $143.1 billion in comparison to the $141.4 billion which was the initial expectation. The revenue was also up by 13% from the previous year, which driven greatly by the growing sales in e-commerce.
The revenue of digital advertising also saw an increase of 26% in the third quarter from the previous year. Amazon Web Services, on the other hand, witnessed an over the year growth of 12%. Looking forward, Amazon executives claimed the fourth quarter sales to touch $167 billion, which is ahead of the estimated of the analysts.
Newer Innovations And Amazon Stocks
One of the major reasons why you should be more interested in Amazon’s stocks is because of the innovations that Amazon is bringing to the table. The continuous diversification is one of the reasons behind the success of the company.
Amazon pays approximately $1 billion every year to live stream the NFL games, mainly the “Thursday Night Football” match-ups. However, the company has also shelled out their reported $100 million to air the first ever game of NFL on Black Friday this year. This shift into live sports had been a major help to drive in Amazon Prime subscriptions.
Another example where Amazon aces their innovative skills is in the brand new grocery subscribing service of the company. This is also only exclusive to Amazon Prime members.
Amazon has now been running a trial where all the existing prime members would get the option for paying an extra $9.99 every month to get unlimited delivery of groceries from Amazon Fresh and Whole Foods on all orders above $35. This new service is still under trial in the markets of Colorado, Sacramento, California, Denver, Colorado, and Columbus, Ohio.
Amazon has been betting that the members of Amazon prime would want to pay the additional monthly charge for the freshest foods reaching their doorstep without having to pay any delivery fees. The company has also become one of the biggest players in the grocery industry ever since it had acquired Whole Foods back in 2017 for $13.7 billion.
Amazon’s Push Into Artificial Intelligence
AI has been one of the major pushes in the technical sector and one of the hottest trades in the share market. Amazon is not missing out on it either. While AI is not yet a core structure of its business, Amazon has been pushing itself into this space in major ways.
In the end of November, the brand had revealed their brand new AI chatbot solely for businesses known as “Q.” Q got his name inspiration from James Bond who offers all the spies of the agency with advanced gadgets. The chatbot helps the users understand the cloud computing services of Amazon. And can easily make changes to the source code among its other functions.
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Conclusion? Go Buy Those Amazon Stocks!
Is Amazon a good stock to buy? There is so much going on at Amazon that it is impossible to capture everything. The brand had regained its footing after the Covid pandemic. Since then it has been succeeding in numerous diverse and exciting areas which are beyond the basic e-commerce offering.
With an increasing focus on AI and constant innovations, Amazon looks pretty poised to stay as the leading mega-cap tech concern into 2024 and beyond that. Therefore, it is safe to say that Amazon is one of the best stocks that you can invest in 2024!
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