5 Stocks That Will Make You Rich in 5-10 Years

2. Amazon.com Inc (NASDAQ:AMZN)

Number of Hedge Fund Investors: 286

Amazon.com Inc (NASDAQ:AMZN) is one of the stocks that have the potential to keep growing in the next five to ten years according to Wall Street analysts. Analysts like the stock because of Amazon.com Inc’s (NASDAQ:AMZN) ecommerce business and Cloud, which is set to grow due to AI features Amazon.com Inc (NASDAQ:AMZN) is offering.

Sylvia Jablonski, Defiance ETFs CEO and CIO, recently said that now is the right time to pile into the Magnificent Seven group of stocks on the dip. Amazon.com Inc (NASDAQ:AMZN) is a notable member of the Magnificent Seven group.

Doug Anmuth, head of JPMorgan’s internet research team, explained on CNBC why Amazon.com Inc (NASDAQ:AMZN) is on top of his favorite picks for 2024. The analyst said he saw strong improvement in Amazon.com Inc’s (NASDAQ:AMZN) ecommerce business and margins expansion in 2023 and he expects this to continue in 2024.

In its October 2023 investor letter, Lakehouse Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN):

“The Fund’s largest position, Amazon.com, Inc. (NASDAQ:AMZN), reported an impressive quarterly result with strong execution and cost discipline driving significant operating leverage across the business. Net sales grew13% year-over-year (11% in constant currency terms) to $143 billion whilst operating income grew 348% to $11.2 billion, well ahead of guidance and analysts’ expectations. Growth within their core e-commerce business proved resilient again and management noted that they are continuing to see material productivity and operational benefits from the recent reorganisation of their US fulfilment network. This involved transitioning from one national network to a series of eight separate regions serving smaller geographic areas.

The companies second largest segment, Amazon Web Services (AWS), grew revenue at 12%, a rate consistent with what was achieved last quarter. This was pleasing to see as it signalled that growth is stabilising after several quarters of deceleration driven by customer optimisations. Whilst these customer optimisations are moderating, management noted that they still remain at elevated levels, and hence, they will likely provide a slight (albeit diminishing) headwind for the next few quarters. In any event, we are not concerned as we believe the current headwinds are more a factor of cyclical weakness, as opposed to any fundamental issues. Zooming out, AWS remains the leading cloud provider (in what is an increasingly two-horse race with Microsoft’s Azure) and with 90% of global IT spend still on-premise there is still plenty of runway for future growth.”