2 Reasons to Buy Amazon Stock Before It Skyrockets
While Amazon (NASDAQ: AMZN) is still down 18% over the last 12 months, investors have begun to regain optimism as the outlook improves. The diversified tech giant looks increasingly capable of overcoming near-term macroeconomic challenges and meeting its long-term potential. Let's dig deeper to see why its shares are a strong buy today.
Like many stay-at-home-focused companies that boomed during the worst of the COVID-19 pandemic, Amazon gave back much of its gains in 2022 as inflation and overexpansion gutted growth and margins in e-commerce and cloud computing. But the company's impressive first-quarter earnings suggest management is finally turning the ship around.
While a revenue growth rate of 9% year over year to $127.4 billion is nothing groundbreaking, the bottom line tells a different story. Operating income surged 30% to $4.77 billion, while net income improved from a loss of $3.84 billion to a gain of $3.17 billion. In previous quarters, CEO Andy Jassy expressed a commitment to making the business more efficient by scaling back unprofitable business ventures, streamlining Amazon's sprawling logistics network, and reducing staff.
Source Fool.com
