3 Reasons to Buy Amazon Stock Like There’s No Tomorrow

Amazon (NASDAQ: AMZN) recently surpassed $2 trillion market capitalization Amazon passed $1 trillion not long ago, and it may not be long before it hits $3 trillion. That’s a 50% gain from Amazon’s current share price, which is up 27% this year already, and it has solid growth drivers.

Here are three reasons why investors should consider buying stocks now.

1. Its opportunities in cloud computing

When ChatGPT burst onto the scene nearly two years ago, Amazon was quick to announce its own investments in generative artificial intelligence (AI). The company has since launched a series of AI services, taking its cloud services division, Amazon Web Services (AWS), to a whole new level.

Amazon’s generative AI is divided into three categories designed to target all AWS customers. Larger companies with tons of data and resources of their own can create their own base models (FMs), which are the foundation of generative AI. They are trained on so much data that they start to “generate” and appear creative, hence the name.

Businesses that don’t need as much customization can use Amazon’s content management templates and extended language models (LLMs). And customers who rely on software or technical support rather than on-site developers can use several apps that Amazon has created for small businesses.

For example, many clients, including big names like Data dog And Toyota engineuse Amazon Q, which creates and tests code, transfers code between languages, and generally follows coding guidelines.

The opportunities seem endless. Management has said that customers are finally nearing the end of their cost optimization efforts, which has led to a deceleration in AWS sales growth. And between bigger budgets and Amazon’s cutting-edge developments in artificial intelligence, AWS should be able to extend its lead in cloud computing. Expect more exciting developments in this space.

2. A change in advertising

Advertising is currently undergoing major changes, moving away from traditional media such as print and television towards digital media and ad-supported streaming.

A modern form of advertising is to partner with third-party vendors. Not only do they pay Amazon a portion of their revenue to host their products and often to fulfill their deliveries, but they can also increase their chances of being found and making a sale by paying Amazon even more money to showcase their products in different ways.

This is another way Amazon is leveraging its investments in AI. It offers third-party vendors an unparalleled opportunity to leverage its platform and data to reach buyers of their products. Amazon recently joined Netflix And Walt Disney by launching an ad-supported streaming offering, and using the same advertising model it uses on its website to make money from streaming.

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Advertisers are clearly buying into this idea. Advertising has been the fastest growing segment on Amazon for some time now, even though…