27 September 2022
By : Quick Insurance Guru
Even titans like Amazon are not immune to the carnage. Like many growth stocks, the online retail juggernaut's shares are down sharply this year.
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Amazon remains dominant in both e-commerce and cloud computing in the U.S. and many other countries.
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Yet traders appear to be discounting this fact, as sluggish online retail sales and rising costs have dented its profits in recent quarters.
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Despite the recent slowdown, global e-commerce sales are still projected to exceed $8 trillion by 2026, up from $5.2 trillion in 2021, according to Statista.
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That leaves plenty of room for Amazon to grow its roughly $500 billion revenue base into an even more massive sum in the coming years.
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Amazon's advertising business also stands to benefit from the expansion of the e-commerce market.
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Third-party sellers already account for more than half of the sales on Amazon's online marketplaces.
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Amazon Web Services is the leading provider of cloud infrastructure services in an industry that's forecast to grow to $947 billion by 2026, up from $445 billion in 2021
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AWS is already highly profitable; it generated $5.7 billion in operating income in the second quarter alone.
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No stock investment is without risk. That's true even for the mighty Amazon, which faces formidable competition in several of its most important markets.
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