The stock market plummeted Monday, with companies like Tesla (TSLA) falling as much as 13%. However, there is hope that things will begin to turn around for the tech sector at some point this year. When that does happen, Amazon (AMZN) may have proved itself as the smartest stock to buy right now.
The company is already an industry leader, with its Amazon Web Services (AWS) business becoming a tech staple. Yet that is poised to continue as it leverages its e-commerce dominance into the emerging world of artificial intelligence. With its user base and diversification, that technology may push its already successful subsidiaries into a new stratosphere.
Amazon May Be the Smartest Stock to Buy for Three Reasons
Also Read: Amazon (AMZN) to Create AI Division as Stock Looks to Continue 16% Jump
Earlier this month, Burgeon Capital called Amazon a Top 5 AI stock. However, that almost undermines the massive potential present in the company. Indeed, amid its vast success in a host of sectors, there are three reasons why Amazon (AMZN) may be the smartest stock to buy right now.
E-Commerce Business is Thriving
Any conversation regarding Amazon begins with its e-commerce success. Moreover, the juggernaut is in place to lead an industry that just keeps getting bigger. Nearly 40% of all online sales in the United States were made through the company. Indeed, that remains leaps and bounds ahead of all competition.
That sector should continue to increase in prevalence and usage among the modern user base. Moreover, it will lead to continued success. Its dominance in the online shopping space saw it finally usurp Walmart (WMT) in revenue for the first time ever.
Cloud Computing Developing and Dominance
Also Read: Apple, Meta, & Amazon Lead Tech Firms Pledging $1T in US Investment
Additionally, AWS and the cloud computing sector are the second most important facet of its business. It saw revenue jump 19% in 2024, with sales of that year racing $107.6 billion. Moreover, it generated a 37% profit margin in a major year.
However, that success will also benefit from a surging industry. Goldman Sachs experts project that the market will reach a $2 trillion cap over the next five years. Amazon should be able to ensure a top position in that market boom. Therefore, setting up the company to thrive as the industry does.
Digital Advertising
Finally, Amazon’s digital advertising is a clear benefit to its thriving ecosystem. The company is the market leader in revenue, with the platform driving 3.3 billion users in one month alone. Moreover, platforms like Amazon Prime Video only widen that audience.
The company earned more than $56 billion in digital ad sales last year. That figure continued a growth of more than 80% in the last three years, with only Alphabet (GOOGL) and META surpassing the company in market share. As its presence grows in other sectors, its digital ad benefits should become icing on top of a thriving and diversified business. Ultimately, assuring Amazon (AMZN) as one of the smartest stocks to buy in 2025
