Amazon’s shares are up more than 20% in 2019.
In spite of continued fears over the ongoing trade war, the stock market opened on a high note on Tuesday morning. Many stocks were performing well, including Amazon. The company’s stock was up 1%, leading the way for the FANG stocks.
The company’s stock is up 21% in 2019 alone and the company has delivered solid quarterly earnings reports. In the first quarter, Amazon reported earnings of $7.09 per share, which topped investor expectations of $4.72 per share.
The company’s total operating income rose to $4.4 billion. And experts believe the company has a lot more room for future growth.
More than just an e-commerce giant
Amazon has grown to one of the largest companies in the world and its shares have been steadily climbing all year. The company is best known for its website and nearly half of all e-commerce sales in the U.S. are made through Amazon.
But Amazon operates a number of other profitable businesses as well. Amazon Web Services (AWS) is the company’s cloud computing business. According to Barron’s, AWS is worth half a trillion dollars and on its own could be considered one of the most valuable companies in the world.
And the market for cloud technology isn’t expected to slow down anytime soon. Spending on public cloud servers is expected to increase by 36% in 2019, which a 31% increase from 2018. Revenue for AWS increased by 41% last quarter alone.
And Amazon continues to expand its digital advertising business which has increasingly encroached on companies like Google and Facebook. Plus, the company continues to expand into other areas with voice-activated products like Alexa.
Amazon continues to be the company to beat and there’s still plenty of room for the company’s shares to continue to grow. One analyst even speculated that Amazon’s shares could grow 60% to hit $3,000 per share within the next two years. And Amazon’s stock has risen already 150% over the last three years, so anything is possible.