## Why Invest in Amazon Stock in 2020?
Amazon (AMZN) is one of the most successful companies in the world, with a market capitalization of over $1 trillion. The company has been a pioneer in e-commerce, cloud computing, and artificial intelligence, and it continues to disrupt a wide range of industries.
In 2020, Amazon is expected to continue its strong growth, driven by its core businesses as well as its new initiatives. Here are some of the reasons why you should consider investing in Amazon stock in 2020:
### 1. Strong Core Businesses
Amazon’s core businesses are e-commerce, cloud computing, and advertising. These businesses are all growing rapidly, and they are expected to continue to do so in the years to come.
* **E-commerce:** Amazon is the largest online retailer in the world, and it continues to gain market share. The company’s vast selection of products, competitive prices, and fast shipping times make it a popular choice for consumers. Amazon is also investing heavily in new e-commerce initiatives, such as its Amazon Fresh grocery delivery service and its Amazon Go cashierless stores.
* **Cloud computing:** Amazon Web Services (AWS) is the leading cloud computing provider in the world. AWS offers a wide range of cloud computing services, including compute, storage, networking, and databases. AWS is used by a wide range of businesses, from startups to large enterprises. AWS is growing rapidly, and it is expected to continue to be a major driver of Amazon’s growth in the years to come.
* **Advertising:** Amazon’s advertising business is growing rapidly. The company’s advertising platform allows businesses to reach a large audience of consumers. Amazon is also investing in new advertising initiatives, such as its Amazon DSP demand-side platform.
### 2. New Initiatives
In addition to its core businesses, Amazon is also investing in a number of new initiatives. These initiatives include:
* **Healthcare:** Amazon is expanding into the healthcare sector with a number of new initiatives, such as its Amazon Pharmacy service and its Amazon Care telehealth service. Amazon is also working on developing new healthcare technologies, such as wearable devices and artificial intelligence-powered healthcare applications.
* **Transportation:** Amazon is investing in a number of transportation initiatives, such as its Amazon Flex delivery service and its Amazon Air drone delivery service. Amazon is also working on developing new transportation technologies, such as electric vehicles and autonomous vehicles.
* **Entertainment:** Amazon is expanding into the entertainment sector with a number of new initiatives, such as its Amazon Prime Video streaming service and its Amazon Music streaming service. Amazon is also producing original content for its Prime Video service.
### 3. Strong Financial Performance
Amazon has a strong financial performance. The company has been profitable for many years, and its revenue and earnings have grown rapidly. Amazon is also generating strong cash flow, which gives it the financial flexibility to invest in new initiatives.
### 4. Leadership Position
Amazon is a leader in a number of industries, including e-commerce, cloud computing, and artificial intelligence. The company has a strong brand and a loyal customer base. Amazon is also well-positioned to benefit from the continued growth of the digital economy.
### 5. Valuation
Amazon stock is trading at a premium to the broader market, but it is still relatively attractive compared to other high-growth technology companies. Amazon’s stock price is currently around $3,000 per share, which gives the company a market capitalization of over $1 trillion.
### Risks to Consider
There are also some risks to consider before investing in Amazon stock. These risks include:
* **Competition:** Amazon faces competition from a number of large and well-established companies, including Walmart, Google, and Microsoft.
* **Regulation:** Amazon’s businesses are subject to regulation from a number of government agencies. This regulation could impact Amazon’s growth and profitability.
* **Economic downturn:** An economic downturn could lead to a decline in consumer spending, which would hurt Amazon’s business.
### Conclusion
Amazon is a great company with a bright future. The company has a strong track record of growth and profitability, and it is well-positioned to benefit from the continued growth of the digital economy. Amazon stock is a good investment for investors who are looking for long-term growth.
### Additional Resources
* [Amazon Investor Relations](https://ir.aboutamazon.com/)
* [Amazon 10-K Annual Report](https://www.sec.gov/Archives/edgar/data/1018724/000101872420000007/amzn-20200123.htm)
* [Amazon Stock Price](https://www.nasdaq.com/market-activity/stocks/amzn)