At nearly $3,520 a share, Amazon is one of the safest stocks to own.
All with the ecommerce boom showing no signs of slowing.
According to eMarketer, U.S. consumers will spend about $933 billion on ecommerce this year—a nearly 18% jumped year over year. That should equal about 15.3% of total retail sales. By the time 2025 rolls around, e-commerce could represent about 23.6% of total retail sales.
Amazon.com should benefit from all of that – substantially.
In addition, while second quarter earnings disappointed, the company still managed to trounce expectations thanks to cloud computing, subscriptions, and advertising. For example, with cloud infrastructure demand on the rise, Amazon Web Services (AWS) saw revenue soar 37% to $14.81 billion in the second quarter of the year.
“AWS added more revenue quarter-over-quarter and year-over-year than any quarter in our history,” Brian T Olsavsky, Senior Vice President and Chief Financial Officer at Amazon said, as quoted by InfotechLead.
With momentum building, AMZN could test its prior high of $3,773 quickly.