There's no question that Amazon (AMZN -4.97%) is one of the most dominant businesses on the planet. This is a testament to its obsession with the customer's needs, and a willingness to take risks and penetrate new markets when it sees big opportunities. There is still more to be excited about as we look to the future.
Here's one reason why Amazon is the ultimate growth stock to buy with $1,000 right now.
Image source: Amazon.
Amazon is riding many tech-related tailwinds
Amazon is special because it benefits from multiple secular trends. Everyone knows the company as the clear leader in e-commerce. In the U.S., nearly 40% of all money spent online goes through Amazon's online marketplace.
The business also has a top position in the cloud computing market. Amazon Web Services (AWS) represented 18.4% of the company's second-quarter revenue and 53.1% of its operating income. Huge customer demand for artificial intelligence capabilities will support durable demand for AWS.
With Prime Video, Amazon has its hands in the growing streaming market that continues to capture viewer attention from traditional cable TV. What's more, the company's digital ad segment is booming. Revenue came in at $15.7 billion in the second quarter, which was 22% more than the same period a year ago.
Wall Street analysts estimate Amazon's sales will increase at an annualized pace of 10.6% between 2024 and 2027. Even though this is a massive enterprise, its growth days are far from over.
