Amazon (AMZN -0.09%) Amazon has become an e-commerce and cloud computing powerhouse over the past few years, which has led to a track record of revenue and profit growth. Even in tough times, like the recent high interest rate environment, Amazon has been able to bounce back and continue to grow by adjusting its cost structure.
Of course, the stock price has fallen at certain points, but overall, if you had invested in Amazon a while ago and stuck with this dynamic player, you would have come out on top. See how much you would have made now if you had invested $10,000 in Amazon 10 years ago.
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Long-term holding
If you bought $10,000 worth of Amazon stock 10 years ago, your investment would be worth more than $114,690 today, proving that Amazon is a great long-term investment. But the question is, is that still true today?
Could this top tech and consumer stock continue to rise? The answer is yes, for three reasons: Amazon continues to lead the fast-growing industries of e-commerce and cloud computing, and should benefit from this in the coming years.
In addition to this, Amazon has been investing heavily in artificial intelligence (AI), and the technology is helping the company in two ways: Amazon is using AI to drive efficiencies across its own business, and Amazon Web Services (AWS) is selling AI products and services to customers. As the largest cloud provider in the world, AWS is in a great position to connect with customers who are launching AI projects.
Importantly, demand for AI is also helping Amazon monetize its AI investments, with AWS already reaching an annual revenue run rate of $100 billion.
All of this suggests that Amazon has what it takes to generate earnings growth over the next few years, which could lead to higher stock prices, supporting Amazon’s status as a great long-term investment going forward.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, serves on The Motley Fool’s board of directors. Adria Cimino owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.
