Amazon: Strong 2024 Underperformance Sets Up 2025

Summary:

• Amazon.com, Inc.’s strong 2024 performance, with a 46% return, underperformed peers like Nvidia and Meta Platforms but is poised for robust growth in 2025.
• Lower interest rates in 2025 should boost Amazon’s advertising revenue, potentially surpassing $100 billion by 2026.
• Amazon’s diversified revenue streams, including AWS and advertising, ensure resilience and growth across economic cycles, making it a strong long-term investment.
• I am predicting AMZN will declare its first dividend in 2025, aligning with peers like Meta and Alphabet, further enhancing its investment appeal.

Yes, you read the title right, and it has an oxymoron phrase, “strong underperformance.” Amazon.com, Inc. (NASDAQ:AMZN) stock delivered a strong 2024 by almost any metric but one: comparison against a few “Mag 7” peers. Despite

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOG, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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