A Bull Market Could Be Here: 2 Reasons to Buy Amazon Stock
Amazon (NASDAQ: AMZN) has had a challenging couple of years, as 2022's macroeconomic deceleration led to significant declines in its e-commerce segments. Meanwhile, rising interest rates caused some businesses to trim spending on cloud services, which slowed the revenue growth of Amazon Web Services (AWS). However, the long-term outlooks for both online retail and the cloud market remain strong, and Amazon is likely to benefit substantially as both industries recover.
In 2023, Wall Street made efforts to get past the economic deceleration, in part on the prospects of new developments in artificial intelligence (AI). According to data from Grand View Research, the AI market is projected to expand at a compound annual rate of 37% through 2030. Meanwhile, Amazon's position as the biggest cloud infrastructure company and recent developments in its generative AI offerings are likely to lead to compounding growth as well. Wall Street likes what it sees in this regard and, so far in 2023, has Amazon shares trading up a whopping 51%. More and more analysts believe a bull market could be underway, and it's likely to take Amazon's stock right along with it.
Should you follow Wall Street's lead? Here are two reasons you might want to consider investing in Amazon now -- and no surprise, they both involve AI.
Source Fool.com
