Expert analyzes Meta's price-target hike, Amazon's AI block, Bitcoin rally, and falling yields
The Fitz-Gerald Group Principal Keith Fitz-Gerald analyzes major market moves, including Meta's price-target hike, Amazon blocking Meta's Muse AI agent, Bitcoin soaring above $86K, and falling Treasury yields as inflation worries ease.
Amazon needs no introduction. It's one of the world's most valuable companies. It holds commanding positions in various end markets, with a corporate strategy that centers on always chasing massive opportunities. This playbook has worked wonders.
If you'd bought $10,000 worth of this "Magnificent Seven" stock 10 years ago, here's how much your position would be worth today.
Amazon shares are up 493% in the past decade (as of Oct. 2). That's a nearly six-fold gain that would've grown a $10,000 investment into a stake worth more than $59,300.
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Amazon Prime Now Delivery van and driver downtown on 4th Avenue late in the day. (Getty Images)
When it comes to pure top-line metrics, Amazon is in first place. It collected a whopping $201 billion in net sales in the second quarter. That figure was 560% higher than in Q2 2016. Revenue growth has been the most important catalyst that has driven its stock returns.
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Amazon benefits from some powerful secular trends. It dominates online shopping, with more than 40% of e-commerce sales in the U.S. going through its marketplace. Digital advertising has quietly become a major money-maker, bringing in $19.8 billion in revenue in Q2; that was up 26% year over year. And the star of the show is Amazon Web Services, the world's No. 1 cloud computing infrastructure provider.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 251.52 | +3.29 | +1.33% |
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Investors shouldn't expect this stock to rise another 493% in the coming decade. But Amazon stock is still worth owning.
Boxes lie on a conveyor belt during Cyber Monday at Amazon's fulfillment center in Robbinsville, New Jersey, Dec. 2, 2024. (Reuters/Eduardo Munoz)
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
