The Unstoppable Rise of Amazon: A Stock Pick for the Ages The Unstoppable Rise of Amazon: A Stock Pick for the Ages

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By Ronald Tech

If you seek a growth stock to fortify your financial future, mere stock-picking won’t suffice. As you tread the path to wealth in retirement, seek beyond entities reaching dizzying heights. Seek the tenacity that endures, the resilience that withstands the tempests of economic turmoil.

And who epitomizes this blend of growth and loyalty better than Amazon ((NASDAQ: AMZN))? Here’s why this titan deserves a spot in your investment portfolio.

Unwavering Repeat Revenue from a Vast Customer Base

Amazon basks in the adulation of millions of Prime customers, patrons who flock in droves to its digital aisles with fervor. With over 167 million U.S. Prime loyalists and 200 million more across the globe, Amazon reaps the rewards of steadfast spending. A whopping 42% of U.S. Prime members forge two to four transactions each month, fueling Amazon’s meteoric ascent to a $604 billion revenue colossus by June 30, 2024.

A testament to its allure, Amazon banks on not just e-commerce but a flourishing enterprise cloud arm known as Amazon Web Services (AWS). Beneath its revenue tapestry, AWS, serving a clientele spanning 190 nations, emerges as not merely a revenue tributary but a veritable profit fountain – churning out two-thirds of Amazon’s operational earnings.

A Titanic Field of Growth Beckons

Amazon’s terrain for conquest transcends the mundane. Nestled in the bosom of the e-commerce metropolis, Amazon beholds a realm set to burgeon into a $6 trillion kingdom this year, embracing a promising ascent to $8 trillion by 2028. And AWS, the azure realm Amazon lords over, shimmers with opportunities as well. Last fiscal quarter witnessed AWS revenues soaring at a 19% clip year over year, vaulting to a glorious $98 billion in the trailing 12-month wake. Yet, the vast hinterlands of enterprise data remain untamed, with over 80% tethered to on-premises bastions. The promise herein? A towering citadel of fortune poised to crown AWS as Amazon’s crowning revenue jewel.

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Looming Skies of Untapped Potential

If you gauge Amazon by the narrow compass of price-to-earnings, beware the deception of mere appearances. Amazon’s helm steers not for momentary accolades but for the enduring cascade of cash flows. At 18.4 times the price-to-cash-flow multiple, Amazon weaves a tapestry of value despite the stock’s magnificent twofold ascent in the preceding five years, now reclining at the lowest P/CFO valuation in over a decade.

A visual odyssey through Amazon’s cash from operations unveils a tripling over five years, swelling to a bountiful $107 billion. A tale of ascent emerges: where cash flows, soars the stock, yet the shares tryst within a familiar P/CFO realm. As Amazon unfurls its e-commerce and cloud tendrils further, a celestial procession awaits – one heralded by surges in cash flows, promenading the shares to newfound summits.

Trading slightly shy of its recent zenith at $201, Amazon’s domain beckons investors seeking bountiful yields. A morsel of wisdom for the discerning investor – a few hundred dollars now can reap long-term dividends in Amazon’s exalted realm.

Should the Oracle’s Coin Grace Amazon?

Before you pledge allegiance to Amazon, heed this counsel:

The bondsmen of wisdom at Motley Fool Stock Advisor gaze beyond the horizon and herald ten bastions of promise – and in this grand pageantry, Amazon doesn’t don the laurels. A Black Swan’s dance, these ten avatars hold the promise of colossal returns ripe for reap upon the investment’s harvest.

Recall the day when Nvidia marched onto this hallowed list on April 15, 2005. A mere grand wagered would burgeon into a colossal $729,857 at the confluence of our oracle’s recommendation!* A tale of legend emerges: Stock Advisor, a lodestar offering a beacon through the champ finances, has triumphed fourfold the S&P 500 brass ring since 2002*.

*Stock Advisor returns summon forth the specter of yore on September 9, 2024.