Amazon (AMZN -1.01%) has become an e-commerce and cloud computing powerhouse over the past several years -- and this has translated into a track record of revenue and profit growth. Even in tough times, like in the recent high-interest-rate environment, Amazon prevailed, revamping its cost structure and going on to recover and grow.
Of course, the stock price has dipped at certain points, but overall, if you had invested in Amazon a while back and stuck with this dynamic player, you would have scored a win. Let's take a look at how much you would have now if you'd invested $10,000 in Amazon a decade ago.
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A long-term holding
If you'd bought $10,000 worth of Amazon stock 10 years ago, today your investment would be worth more than $114,690. With that, Amazon proves it's made a great long-term holding. But now the question is whether that's still the case.
Could this top technology and consumer stock have further to go? The answer is yes, for three reasons. Amazon continues to lead in the high-growth industries of e-commerce and cloud computing, so it should benefit from this in the coming years.
On top of this, Amazon has put its focus on investing in artificial intelligence (AI), a technology that's helping the company in two ways. Amazon uses AI to gain efficiency across its own businesses, and Amazon Web Services (AWS) sells AI products and services to customers. Since AWS is the world's biggest cloud provider, it's in the perfect position to connect with customers that are launching AI projects.
Importantly, AI demand is also helping Amazon to monetize its AI investment, with AWS already reaching a $100 billion annual revenue run rate.
All this suggests that Amazon has what it takes to generate earnings growth in the years to come, and that could translate into share price gains -- confirming Amazon's status as a great long-term investment well into the future.
