Amazon stock trading almost 30% below its highest in history, has triggered many investors to ask if it is a unique moment or a mere short-term rebound. The question remains: can investing $10,000 in Amazon at this time bring significant profits in the next 10 years to the investor?
Not a ‘pitch and catch’ kind of a dialogue, actually. However, by merely considering the company’s primary business skills, market extension, and long-term positioning, the answer gets more apparent.
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First, let’s take a look at the things step by step and then take action.
Amazon Is More Than Just E-Commerce — It’s Infrastructure
Besides operating as the best online shopping platform, Amazon has something stronger the store itself, i.e., an economic moat which covers numerous industries and beyond.
The company has been busy for decades building a logistics network which is second to none in the world. The advantage of scale is what Amazon leverages to keep its cost low and to get to the customer faster compared to almost any other company. Furthermore, their extensive use of robotics and artificial intelligence is also reducing the cost of operations significantly.
Although shopper may still perceive that Amazon is just an online store, it definitely has not stopped there.
Amazon Web Services (AWS), its cloud business, is known to be actually a significant percentage of the internet. This platform is providing cloud computing, storage, and data services to millions of customers around the world, namely from the smallest of startups to the largest of global companies. The gains that AWS achieves are substantial, and it has become not so easy for users to walk out, as demonstrated by the fact that the platform is deeply integrated with customer applications and is loaded with high switching costs.
Moreover, the company being a mix of retail and enterprise is a key factor that sustains Amazon’s business model, both in terms of being defendable and diversified.
Can You Get Rich Enough To Be A Millionaire by 2035?
Let’s face the reality. To multiply $10,000 investment into $1 million within 10 years, you would need a 100x return, which is an average 58% annual growth. This sort of performance is seldom seen mainly for large companies like Amazon.
A company close to a $1.9 trillion market cap, Amazon has grown beyond the small startup stage. Simply because the public has accepted them as being very valuable of the economy, companies of this size do not generate extraordinary growth.
Therefore, there are slim chances that by 2035, buying Amazon stock will result in becoming a millionaire. But it shouldn’t be mistaken for a not-so-good investment, however.
What Factors Will Make Amazon Still Worth Investing in 2025?
Despite the negative press, Amazon has several features that make it a good investment option for long-term investors:
- Several growth factors: E-commerce, AI services, and digital advertising are still considered to be the fastest-growing sectors. Amazon is a significant player in all these.
- Brand loyalty: Amazon Prime is the referral program that is used by millions of households in the USA. That already established customer base is extremely valuable and hard to replicate.
- Network effects: The more the demand, the more the sellers. The more the sellers, the wider the range of products. This cycle of attraction remains active.
- Fair valuation: Today, the shares trade at a price-to-sales lower than the five-year average, suggesting that Amazon is positioned at a discount compared to the past.
Furthermore, the recent sell-off of tech stocks has made such a company as Amazon more attractive for long-term investment purposes.
Understanding that it is not a Sudden Success but a Continuous Effort
If you step into the Amazon business, don’t think that you are likely to become a millionaire instantly but it is not a loss alright. If the long-run enrichment of yourself is the only thing that you care about, then Amazon will give you no pause by its absolutely high brand visibility, growth probability, and business immortality.
Putting $10,000 today in will not certainly mean that you will get an extremely high return, but certainly, it may provide you with money that is not kind of idle, surpass the general market, and be a reliable investment in a company that is mainly concerned with the future.
At the conclusion of the day, rational investing comes rarely in the form of moonshots but rather through purchasing quality businesses at fair prices — Amazon as it appears still fulfils this requirement.
