The stock of Amazon has gained 3 percent year to date, and the current price of US$ 3298.99 (about CA$ 4161.68) is quite good. Amazon Stock is expected to continue growing as digitalization is happening rapidly, and the shift towards online commerce is continuing at a decent pace.
Live Streaming is On
Amazon is making new strides in live streaming
as it has signed a deal with Ligue 1 in France and will stream more than three
hundred matches per season.
Estimated Revenue
Amazon’s revenue can grow by 27 percent and
reach US$ 488 (about CA$ 615.61) billion for this year. The net income might
also increase to US$ 29.5 (about CA$ 37.21) billion. If that happens, it will
increase the 2021 EPS figure to US$ 63.46 (about CA$ 80.05).
Amazon Stock Performance Since 2019
Since the end of 2019 (when the COVID-19
pandemic was something distant), Amazon’s stocks have grown by 75 percent. It
was US$ 1848 (about CA$ 2331.25) at that time, and now it’s at US$ 3298.99
(about CA$ 4161.68). It is better than S&P, which has gained only 69
percent in the same duration.
The coronavirus pandemic has proven beneficial
for Amazon as the customer preference shifted from traditional commerce to
online commerce. One of the key factors in the revenue growth during the first
quarter of 2021 was the international segment that recorded a 60 percent growth
(year on year).
The Future Growth Drivers
The shift towards online commerce seems
irreversible at the moment, and countries from all over the globe are adopting
it. Organizations are also depending more on Amazon Web Services, and they will
continue to do so in the near future.
Change of Leadership
Though there isn’t a doubt about the fact that
Jeff Bezos is brilliant, and he has done an excellent job with Amazon, it’s
time to look ahead. The new CEO of Amazon, Andy Jassy, is more soft-spoken and even-keeled than Jeff Bezos. He is a champion when it comes to focusing on the
details.
After graduating from Harvard Business school,
he joined Amazon and successfully led AWS since the cloud computing unit
formation in 2003. Now, more than half of the company’s profit comes from AWS.
It posted a profit of US$ 52.7 (about CA$ 66.48) billion in revenue in the last
12 months only. If it were a stand-alone company, AWS would be the 61st largest company by sales in the US. So, Jassy might be the right choice for
taking Amazon stocks to new highs in the future.
Final Words
There are numerous reasons why investing in
Amazon Stock is a smart move. Do you agree? Let us know what you think by
leaving a comment below!
To check Amazon stock price now, click here.
Also, to start investing yourself, check out this link.
Sources:
https://www.fool.com/investing/2021/08/16/3-reasons-i-just-bought-amazon-stock/
https://www.forbes.com/sites/greatspeculations/2021/08/13/amazons-stock-to-rise-as-growth-continues/?sh=256e33884788