Amazon Hits All-Time High Amid Strong Growth and Reasonable Valuation
Amazon's recent all-time high may have gone under the radar for some investors, but its strong performance is well-deserved. The company posted its strongest top-line growth since spring 2021, with net sales rising 20% in its latest quarter.
This impressive growth is not limited to e-commerce; Amazon's high-margin AWS cloud-hosting business saw a 37% increase in the same period, accounting for more than half of the company's operating profit. The company's competitive advantage in last-mile logistics also continues to drive revenue and profits.
With its forward earnings multiple trading at around 26 times next year's earnings, Amazon is considered reasonably priced given its dominant position and strong performance. As one analyst noted, 'it wasn't that hard to find the right stock for your next $1,000.'