Key Factors Driving Amazon Stock Potential in 2024
Improving Gross Margins
Gross profit is crucial for long-term profitability. Amazon is diversifying its revenue streams, especially through service divisions with higher gross margins, like AWS and advertising services. This shift boosts the company's profit potential and could drive further growth.
AWS Recovery Potential
AWS is expected to bounce back in 2024, driven by increasing demand for cloud computing services. As the cost-control trend stabilizes, AWS could grow faster, attracting more investors and enhancing Amazon's growth prospects.
Undervaluation and Growth Potential
Amazon's current valuation, indicated by the P/S ratio, is still below its historical levels, suggesting room for further growth. As AWS performance improves and revenue increases, Amazon's stock could see significant upside in 2024.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.