Stock markets plummeted on Monday, with companies like Tesla down 13%. But at some point this year, there is hope that things will start to turn around because of the tech sector. When that happened, Amazon (AMZN) may have proved itself as the smartest stock to buy now.
The company is already an industry leader, and the Amazon Web Services (AWS) business has become a tech staple. But it is poised to continue to harness its e-commerce dominance into the emerging world of artificial intelligence. With its user base and diversification, the technology could push its already successful subsidiaries into the new stratosphere.
Amazon may be the smartest stock to buy for three reasons
Earlier this month, Burgeon Capital called Amazon the top 5 AI stocks. But that hardly undermines the great potential that exists in the company. Certainly, amidst the huge success in many sectors, there are three reasons why Amazon (AMZN) could be the smartest stock to buy now.
E-commerce business is thriving
Conversations about Amazon start with the success of e-commerce. Additionally, Juggernauts are in place to lead an ever-growing industry. Almost 40% of all online sales in the US were made through the company. Certainly, it leaps ahead of all competition and builds boundaries.
That sector needs to continue to increase the prevalence and usage of the modern user base. Plus, it leads to continued success. Its advantage in online shopping spaces ultimately led to Walmart (WMT) making its first profitable revenue.
Cloud computing development and domination
Furthermore, AWS and the cloud computing sector are the second most important aspects of its business. In 2024, revenues rose 19%, with revenues of $107.6 billion that year. Additionally, it generated a 37% profit margin in major years.
However, its success will benefit from a burgeoning industry. Goldman Sachs experts predict that the market will reach a $2 trillion cap over the next five years. Amazon should be able to secure the best position in its market boom. Therefore, you set up a company to thrive like an industry.
Digital Advertising
Finally, Amazon’s digital advertising is a clear advantage to its thriving ecosystem. The company is a revenue market leader, and the platform drives 3.3 billion users in just one month. Plus, platforms like Amazon Prime Video will only expand their audience.
The company won over $56 billion in digital advertising sales last year. That figure has grown by more than 80% over the past three years, surpassing the company in market share only in the alphabet (GOOGL). As its presence grows in other sectors, the benefits of its digital advertising should be icing in addition to thriving and diversifying businesses. Ultimately, guarantee Amazon (AMZN) as one of the smartest stocks to buy in 2025
