ewsba.se
Written by Stefon Walters for The Motley Fool->
Amazon is the second-best-performing "Magnificent Seven" stock this year through May 7.
AWS should continue to grow impressively due to increased cloud and AI demand.
Amazon's advertising business has made $70 billion in the past 12 months.
It has been a good start to the year for Amazon (NASDAQ: AMZN), with the stock up 19.7% year to date through market close on May 7. Except for Alphabet, Amazon has been the best-performing "Magnificent Seven" stock this year.
Given Amazon's recent run-up -- up nearly 27% between April 7 and May 7 -- it's natural to wonder whether it's a good time to buy the stock or hold off in case of a pullback. If you're a long-term investor, it's definitely a good time to buy the stock. It's a blue chip stock you can comfortably hold for the long haul.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Despite its dominance and size, Amazon is still well positioned to keep growing impressively over the foreseeable future. Its e-commerce business is becoming more efficient and profitable, which is a turnaround from the historical "just bring in the revenue and AWS will bring in the profit" model.
AWS -- Amazon Web Services -- remains dominant in the cloud industry, and growth is accelerating again as AI demand picks up and more companies need computing capacity and access to various AI models. AWS is admittedly constrained right now because demand is much higher than it can handle, but Amazon's $200 billion 2026 capital expenditure plans -- most of which will go to data centers and AI infrastructure -- should help address that problem.
One of the more overlooked business segments for Amazon is its advertising business. In the first quarter, its revenue increased by 24% year over year and is now at $70 billion over the past 12 months. Amazon has the data and eyeballs to make a valuable advertising platform, which should end up being a lucrative business for Amazon.
No need to overthink it; Amazon is built to be a good investment for quite some time.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of May 9, 2026.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This data feed is not available at this time.