With Wall Street exploding this week, various stocks are performing immensely well. Continuing on with the trend for 2024, the technology sector has seen some of the largest gains. Yet, Amazon (AMZN) has emerged as the Magnificent Seven stock that has the most potential of its greatest competitors.
The e-commerce juggernaut is viewed alongside Telsa (TSLA), Meta (META), Nvidia (NVDA), Alphabet (GOOGL), Microsoft (MSFT), and Apple (APPL). With many of them surging in value throughout the last several months, Amazon could be poised to be the biggest gainer for the foreseeable future.
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Amazon, the King of the Magnificent 7? Why Experts Believe in Its Potential
The Magnificent Seven stocks bear that name for a reason. Indeed, these companies represent some of the most promising value increases throughout Wall Street. Moreover, throughout the year, they have made good on a lot of that potential. However, one company has emerged as having the brightest upside over the next decade.
Amazon (AMZN) has emerged as the Magnificent Seven stock with the most potential to lead the pack over the next 10 years. Although Nvidia has increased as much as 175% this year, and Apple was the first company to break through both the $2 trillion and $3 trillion mark, they could be looking up at Amazon.
With the ongoing AI boom, all expectations for a price increase start with the developing technology. The company thrives on diversification and perhaps outperforms in that area relative to its competition, but has a clear avenue to make massive strides in the most popular technology sector.
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They have made partnerships with firms like Anthropic and could rely on the tech to engine many of its other endeavors. Among them is its Amazon Web Services (AWS) business. The cloud-based computing sector has been its fastest growing. Moreover, it has become an industry leader as it has developed.
Additionally, Amazon’s success gives it access to increased funds to continue exploring these avenues. IN Q3, it reported an 11% revenue increase over 2023. But that doesn’t tell the whole story. The business has also seen free cash flow increase by 123%, with operating cash flow over the last 12 months increasing by 57%.
Microsoft has already told investors that its OpenAI endeavor will begin eating into profits and available cash flow. Moreover, Meta has spent significantly on its market share for AI consumers. Although Amazon has as well, it is in a position to spend even more, with a clear cash flow benefit that is not available in the same way as the other six stocks.