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Have you ever imagined becoming the next lottery winner? While about half of Americans will try to buy lottery tickets, most end up with nothing. According to public records, over $100 billion is spent on lotteries each year, and the odds of winning the Powerball jackpot are only 1 in 292,000,000. It seems that hoping for wealth from the lottery is not a wise choice.
However, don't rush to give up; there are more reliable ways to accumulate wealth, which is investment. As of recently, approximately 162 million adult Americans have participated in investing, which is widely regarded as an effective way to build wealth. In the long term, the S&P 500 index has achieved steady growth, while individual stocks have provided even more outstanding returns. For example, the large company in the field of artificial intelligence, Nvidia, has seen over 1200% growth in the past five years.
If you're considering which stocks can invigorate your investment portfolio at this moment, a tech giant thriving in the rapid development of artificial intelligence might be a good choice—Amazon. Lottery tickets may not help you on the path to wealth, but Amazon just might.
Everyone is familiar with Amazon's e-commerce business, which offers a vast array of products from essentials to a multitude of items at low prices, winning many loyal customers with its Prime membership program. With Prime, you can enjoy fast and free shipping, as well as additional benefits such as access to books, movies, and prescription services. The annual "Prime Day" event not only boosts sales but also attracts more consumers to join the Prime program.
However, Amazon is not just a leader in the e-commerce field. Its cloud computing division—Amazon Web Services (AWS)—is its largest source of profit. AWS is not only a global leader in cloud services but also provides a comprehensive range of solutions from data storage to AI product services. It offers the latest Nvidia chips or the budget-friendly Trainium chips, which are designed by Amazon itself, to customers with different budgets. Additionally, through Amazon Bedrock, customers can customize a range of large language models to meet their needs. All of this has helped AWS achieve an annual revenue scale of $123 billion in the most recent quarter, with revenue soaring over 17%.
Amazon is also investing in AI for the e-commerce sector, using tools such as robots to enhance the efficiency of its fulfillment and distribution networks. This not only lowers service costs but also promotes revenue growth in the long run. Despite experiencing an annual loss in 2022 due to high inflation, Amazon returned to profitability the following year. In the most recent quarter, the company's revenue and net profit both showed double-digit growth, reaching over $167 billion and $18 billion, respectively.
Another notable point is that Amazon has always had good investment selection capabilities, continuously supporting the company's growth. Over the past three years, Amazon's stock has risen by 80%, and even so, there is still room for the stock to rise. The current price-to-earnings ratio of the stock is 34 times, which is a reasonable level among growth stocks. Considering that we are still in the early stages of AI development, the market outlook is broad, and analysts expect the AI market to exceed 20 trillion dollars in a few years. Amazon has already made good arrangements for this.
So, if you are seeking opportunities for wealth accumulation, rather than relying on the lottery, it would be better to consider Amazon as an investment option. Investment requires caution, and this article does not constitute investment advice; discussions are welcome! 😊