Why Amazon Stock Is the All-Star E-Commerce Play Everyone Should Own

Stocks to buy

Positioned strongly across e-commerce, digital advertising, and cloud services, Amazon (NASDAQ:AMZN) stock leads in North American and Western European online marketplaces. AWS remains the top player in cloud infrastructure and platform services, ensuring Amazon’s continued growth amid expanding market opportunities.

The company joined the Dow 30 earlier this year, drawing strong bullish sentiment from analysts. All 42 analysts rated Amazon stock as a strong buy. Despite a 46% rise, analysts predict a further 20% increase. Here’s more on why this e-commerce giant remains a buy right now.

RxPass Expansion to Prime Members on Medicare

RxPass, part of Amazon Prime, has helped tens of thousands save on recurring medications. Now available to over 50 million Medicare beneficiaries, RxPass offers affordable access to common medications with monthly delivery and 24/7 pharmacist support.

Switching even one medication to RxPass could save a beneficiary about $70 annually; transitioning all eligible medications could potentially save Medicare nearly $2 billion and reduce out-of-pocket costs significantly.

VP of Amazon Pharmacy John Love emphasized on programs like the RxPass to enhance convenience and affordability for both customers and caregivers. This will promote better medication adherence and health outcomes.

John Love, Vice President of Amazon Pharmacy, highlighted that programs like RxPass enhance affordability and convenience for caregivers and customers, promoting better medication adherence and health outcomes. 

Amazon Pharmacy is known for its exemplary services like free home delivery and 24/7 access to pharmacists. Customers benefit from transparent pricing displayed on Amazon’s platform, facilitating cost-effective medication purchases with or without insurance through RxPass.

Prime Day is Fast Approaching

Merchants are expanding discount events to align with seasonal shopping patterns, with Amazon teasing “early Prime Day deals” over a month in advance.

The eCommerce giant hinted at these offers in a recent blog post, promising previews and sneak peeks of upcoming deals. Various publications have already started featuring significant summer discounts on over 50 popular items ahead of the event.

Retailers are reshaping traditional shopping cycles, extending seasonal sales to meet consumer demand amid inflationary pressures. 

Merchants like Amazon are extending sales events like Black Friday to last a week or beyond, even continuing popular sales like Memorial Day into additional days. This strategy aims to sustain customer interest and spending over an extended period, rather than in short bursts. 

Enhanced marketing capabilities, including data analytics and AI, enable retailers to customize promotions to individual preferences, boosting conversion rates and maintaining engagement throughout prolonged sales periods.

Amazon Stock Looks Like a No-Brainer Buy

Jeff Bezos founded Amazon initially as an online bookstore, a niche concept at the time. Today, Amazon’s operational scale is staggering, delivering an astounding 4 billion packages in the U.S. last year with next-day service.

This efficiency underscores Amazon’s dominance as the largest online retailer, surpassing the combined market share of its top 10 competitors. 

Despite already leading the market, Amazon continues to expand, as evidenced by its consistent year-over-year sales growth over the past four years.

The company’s strong cloud growth and high margins makes AMZN stock a compelling and high-value stock to buy and hold for years to come.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Articles You May Like

SOUN Stock Analysis: The 3 Biggest Hurdles Facing SoundHound AI
BlackRock’s ETF business just keeps growing, but the search for revenue goes on
3 Fintech Stocks Riding the AI Wave Higher
3 Overlooked Telehealth Stocks Poised for a Comeback
3 Under-the-Radar IPO Stocks to Buy Before They Double