<div id="readability-page-1"><p>Any negative Nellie can find things to dislike about <strong>Amazon</strong> <span>(AMZN<span> 2.77%</span>)</span>. The stock remains down by a double-digit percentage below its previous high. The company could face a bumpy road if the Trump administration's steep tariffs remain in place. The Federal Trade Commission and 17 state attorneys general are going after Amazon in court for alleged monopolistic practices.</p> <p>However, I think Amazon's positive Pollys have a stronger case than the negative Nellies. The e-commerce and cloud services giant's overall future remains bright, in my view. Here are seven reasons to buy Amazon stock like there's no tomorrow.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjA3ODkvYW1hem9uLWFsZXhhLXZvaWNlLXJlbW90ZS1iZWluZy11c2VkLWJ5LXBlcnNvbi1vbi10di5wbmcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="420" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjA3ODkvYW1hem9uLWFsZXhhLXZvaWNlLXJlbW90ZS1iZWluZy11c2VkLWJ5LXBlcnNvbi1vbi10di5wbmcmdz03MDA"/></p><p>Image source: Amazon.</p> </div> <h2>1. AI is only in its early innings</h2> <p>While artificial intelligence (AI) has impacted the world tremendously already, the technology is still only in its early innings. This bodes well for Amazon. Why? It's the world's largest cloud services provider, and AI will run primarily in the cloud.</p> <p>I think Amazon is well-positioned to be a big winner as agentic AI hits its stride. The company should also profit hugely if and when artificial general intelligence (AGI) is ready, especially if Anthropic (an AI pioneer in which Amazon has invested heavily) emerges as an AGI leader.</p> <h2>2. E-commerce still has massive growth potential</h2> <p>Amazon generates most of its revenue from e-commerce. Although e-commerce isn't as big a growth driver for the company as its cloud business, it still has massive growth potential.</p> <p>How much could Amazon's e-commerce business grow? CEO Andy Jassy noted in the company's October 2024 quarterly update that Amazon's share of the global retail market is only around 1%. Between 80% and 85% of that retail market is still in brick-and-mortar stores, with e-commerce making up the rest. Jassy predicted that this &#34;equation is going to flip in the next 10 to 20 years.&#34; If he's right, Amazon should be one of the biggest beneficiaries. </p> <h2>3. Multiple other growth opportunities</h2> <p>AI and e-commerce aren't Amazon's only growth opportunities. The company has multiple &#34;other bets&#34; (to borrow a phrase from another giant AI leader) that could drive long-term growth.</p> <p>Healthcare ranks as one of Amazon's most important areas for growth, thanks to its expansion into the online pharmacy and healthcare provider markets. The company's Project Kuiper satellite network could begin providing internet service later this year. I think Zoox, Amazon's autonomous ride-hailing business, could also move the needle over the long term.</p>  <h2>4. An impressive financial pedigree</h2> <p>It takes money to make money. And Amazon has <em>a lot</em> of money. The company's cash stockpile tops $94 billion. Amazon's revenue continues to grow. Its profits are growing even more quickly, soaring 64% year over year in the latest quarter. Amazon is well-positioned to invest in future growth. </p> <h2>5. A culture of innovation</h2> <p>Amazon founder Jeff Bezos instilled a start-up mindset among employees that remains in place today, even though the company is now valued at around $2.2 trillion. He referred to this as a &#34;Day One&#34; culture. Amazon continues to look for new ways to innovate and new opportunities to grow. </p> <p>Jassy expanded on this &#34;Day One&#34; perspective in his latest letter to shareholders. He wrote that Amazon also has a &#34;why culture.&#34; Jassy explained that the company's employees &#34;have to constantly question everything around us.&#34; He said that asking &#34;why&#34; has led to the major innovations that have led to Amazon's growth, from shifting from selling only books to selling all types of products to launching Amazon Web Services. </p> <p>I think Amazon's culture of innovation, based upon thinking like a start-up and continually asking why, will lead to more game-changing products and services in the future.</p> <h2>6. A historically attractive valuation</h2> <p>At least at first glance, Amazon stock doesn't look like much of a bargain. The company's shares trade at nearly 34 times trailing 12-month earnings and more than 32 times forward earnings.</p> <p>However, Amazon's valuation looks attractive compared to its historical levels. The stock is cheaper now than it's been since early 2009, when the U.S. economy began recovering from the Great Recession.</p> <p><img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/70a2c1f84a57ff791e71078847311e58.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="441" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/70a2c1f84a57ff791e71078847311e58.png"/></p> <p>AMZN PE Ratio data by YCharts</p> <h2>7. There <em>is</em> a tomorrow</h2> <p>Probably the best reason to buy Amazon stock like there's no tomorrow is that there <em>is</em> a tomorrow. Any challenges that the company faces from tariffs and macroeconomic uncertainty will be only temporary. Amazon has proven to be remarkably resilient in the past. It will almost certainly continue to be resilient in the future. If you're a positive Polly about Amazon, I suspect you'll make plenty of money over the long term.</p>                                                                            </div>

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<p>The article outlines seven compelling reasons to invest in Amazon stock despite current challenges. Key points include the early potential of AI, significant growth opportunities in e-commerce, healthcare, and other sectors, a strong financial position with over $94 billion in cash, a culture of innovation, historically attractive valuations, and the belief in Amazon's resilience against macroeconomic uncertainties. The author argues that these factors position Amazon well for future success, making it a worthwhile investment.</p>

- The article discusses the potential for Amazon's growth despite current challenges, including tariffs and legal issues.  
- It highlights seven reasons to invest in Amazon, such as its leadership in AI and cloud services, significant e-commerce growth potential, and a strong financial position.  
- The author concludes that Amazon's culture of innovation and resilience suggests a promising future for the company and its investors.

7 Reasons to Buy Amazon Stock Like There's No Tomorrow