The market showed signs of recovery following President Trump's announcement about tariff reductions, yet the Nasdaq remains in a bear market. Despite this technical outlook, opportunities for investment persist, particularly with stocks like Amazon and The Trade Desk. Amazon's diverse operations, especially its profitable segments like AWS and advertising, make it a compelling buy despite fears surrounding its e-commerce vulnerabilities. AWS alone represented 58% of Amazon's operating profit in 2024, highlighting the strength of its non-commerce revenue streams and potential for growth in the upcoming years.
Although e-commerce is the way most people understand and interact with Amazon, it's far from the best reason to own the stock. Amazon has multiple segments, ranging from its online stores to advertising services to its cloud computing division.
In 2024, AWS made up 58% of Amazon's operating profit despite only making up 17% of sales. This showcases the company's strong profit generation capabilities, largely from non-commerce segments.
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