Amazon Hits All-Time High Amid Strong Growth and Reasonable Valuation
Amazon's impressive performance in recent quarters has made it an attractive investment opportunity. The company hit an all-time high earlier this week, but its forward earnings multiple remains reasonable at around 26 times next year's earnings.
In its latest quarter, Amazon reported a 20% increase in net sales, its strongest top-line growth since the spring of 2021. Its AWS cloud-hosting business rose 37%, generating more than half of Amazon's operating profit.
Amazon's e-commerce business is also improving, with revenue rising 16% in North America and 15% internationally. The company's competitive advantage lies in its last-mile logistics capabilities, which give it an edge over other retailers.
Despite investing heavily in AI research, Amazon continues to deliver strong financial results. Its valuation runway suggests that there is still room for growth.