Inflation hikes over the last year have been tough on Amazon (NASDAQ: AMZN), triggering a consumer pullback on its e-commerce site and causing businesses to slash cloud budgets. The challenges have led to significant operating losses and skepticism from investors. However, easing inflation and a leading market share in two high-growth markets suggest the company won't be down forever, making its stock a compelling long-term buy.
The company's most recent quarter revealed improvements in its North American and international segments after a year plagued by declines. Meanwhile, a planned expansion of its cloud platform, Amazon Web Services (AWS), could see it flourish alongside the booming artificial intelligence market (AI). Here's why Amazon stock is a no-brainer buy right now.
Amazon Web Services proved a crucial asset amid an economic downturn last year. The platform's $22.8 billion in operating income made up 100% of Amazon's profits in fiscal 2022 after steep declines in its e-commerce segments. So when AWS showed signs of slowing growth in the first quarter of 2023, investors grew concerned. The cloud platform's revenue rose 16% in Q1 2023, a stark decline from the 37% growth it reported in Q1 2022.
Source Fool.com