Amazon Seen as Top Magnificent Seven Stock to Double by 2028
The 'Magnificent Seven' stock that's most likely to double by 2028 is Amazon, according to Brett Schafer.
Amazon has a strong position in cloud computing through its division, Amazon Web Services (AWS), which has seen significant growth in revenue, reaching $148.4 billion over the last 12 months and growing 37% year-over-year last quarter.
AWS is expected to continue growing due to massive spending plans from AI start-ups and its high profit margins of 37% over the last 12 months.
In addition to AWS, Amazon's e-commerce platform also has potential for growth, with retail revenue reaching $627 billion in the North America and International segments, and expected to continue growing due to economies of scale and margin expansion.
Schafer believes that if Amazon can grow its revenue to $300 billion and maintain a 30% profit margin, segment profits will reach $100 billion, surpassing the company's overall profit in the last 12 months.