Investment Opportunity: Best Growth Stock to Purchase for $10,000 at Present
============================================================
Amazon, the digital behemoth with a market capitalisation of $2.4 trillion, continues to dominate various sectors, propelling its profitability gains. The company's strategic focus on operational efficiency is evident in its diverse business segments, with two key areas—Amazon Advertising and Amazon Web Services (AWS)—contributing significantly to its revenue.
Amazon Advertising is witnessing a surge in growth, with revenue rising 22% year-over-year to $15.7 billion in Q2 2025. This growth is driven by a broad portfolio that includes retail marketplace ads, Prime Video, Twitch, Fire TV, and live sports programming. The segment's expansion is not limited to Amazon's own platforms; the Demand Side Platform (DSP) is increasingly being used by advertisers of all sizes for full-funnel marketing strategies. The connected TV (CTV) advertising market represents a key growth area, with Amazon leveraging partnerships to broaden ad reach in streaming environments. Industry forecasts suggest Amazon's retail media advertising could grow from $56 billion in 2024 to $79 billion by 2026, positioning it on a trajectory to become a $100 billion business within a few years.
On the other hand, AWS, Amazon's cloud computing platform, remains a highly profitable and rapidly growing part of its business. In Q2 2025, AWS revenue increased 17.5% year-over-year to $30.9 billion, with operating income rising to $10.2 billion. AWS accounts for about 18% of Amazon's total net sales and is transitioning from a growth phase toward a mature, high-margin cash generator. Key drivers include expanding enterprise adoption, especially amid the global AI boom, with innovative products like Kiro and Bedrock AgentCore that enhance customer retention and competitive advantage. AWS's secular growth trends reflect rising cloud adoption complemented by Amazon's continuous investments in AI-powered tools and infrastructure.
Together, these segments now contribute nearly one-third of Amazon’s revenue, signalling a strategic shift away from lower-margin retail operations. The enterprise customers' growing desire to build AI apps and tools using AWS's products and services is a positive indicator for the company's future. The global cloud computing market is expected to expand at a 20% yearly pace over the next five years to $2.4 trillion, providing a favourable environment for AWS.
Investors should consider Amazon as a growth stock, given the consensus Wall Street analyst estimates call for a compound annual revenue growth rate of 9.7% between 2024 and 2027 for the company. Analysts also predict a 17.6% increase in earnings per share for Amazon between 2024 and 2027. Investing $10,000 in Amazon should get you approximately 44 shares, based on its trailing-12-month net sales of $650 billion.
Amazon's dominance in the e-commerce sector is undeniable, with nearly 40% of all online shopping in the U.S. going through amazon.com. The company offers a massive product assortment at cheap prices, and consumers are keen on spending on the Amazon site. The digital ad segment is growing at a double-digit clip, with a sizable digital ad segment that generated $56.2 billion in revenue in 2024.
In conclusion, Amazon's strategic focus on its advertising segment and AWS is paying off, with both segments showing strong growth potential. The company's shift away from lower-margin retail operations towards high-margin segments is a positive sign for its future. With the global cloud computing market expected to expand at a rapid pace, AWS is well-positioned to capitalise on this growth. Amazon's growth trajectory makes it an attractive investment opportunity for those seeking long-term growth.
[1] Amazon's Q2 2025 Earnings Release: https://ir.aboutamazon.com/news-releases/news-release-details/amazon-com-inc-reports-second-quarter-results [2] Amazon's Q2 2025 Earnings Call Transcript: https://seekingalpha.com/transcript/4460021-amazon-com-inc-earnings-call-transcript-q2-2025 [3] Amazon's Advertising Business: https://www.businessoffashion.com/articles/technology/amazon-advertising-business-growth-2021-09 [4] Amazon's Connected TV Advertising Strategy: https://www.adexchanger.com/platforms/amazon-connected-tv-advertising-strategy-2021-09 [5] Amazon's Retail Media Advertising Growth: https://www.emarketer.com/content/amazon-s-retail-media-advertising-business-grows-as-it-takes-market-share-away-from-facebook-and-google
- Investors interested in long-term growth might want to consider Amazon as a promising investment opportunity, given its consensus growth rate of 9.7% between 2024 and 2027 in revenue.
- The digital ad segment of Amazon, including retail marketplace ads, Prime Video, Twitch, Fire TV, and live sports programming, is witnessing a double-digit growth with $56.2 billion in revenue in 2024 alone.
- Amazon's cloud computing platform, AWS, has significant growth potential, with an expected annual expansion of the global cloud computing market at a 20% pace over the next five years to $2.4 trillion.
- The strategic focus of Amazon on operational efficiency is evident in its diverse business segments, with two key areas - Amazon Advertising and AWS - contributing nearly one-third of Amazon’s revenue, signalling a shift away from lower-margin retail operations.
