AI cloud computing sales could reach $2 trillion by 2030.
Advertising is a growing opportunity, and Amazon is the third-largest digital ad company.
Amazon has more than 240 million Prime members who are locked into its e-commerce ecosystem.
There are lots of great companies benefiting from big trends right now, but not many of them have exposure to multiple opportunities at the same time. What's more, there may be only a handful of companies that can claim that they hold dominant positions from those opportunities.
But Amazon (NASDAQ: AMZN) can. While its stock has taken a bit of a breather lately, the company continues to expand its opportunities in cloud computing, advertising, and e-commerce.
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Here's why these three areas could help propel Amazon stock higher in the coming years.
Image source: Amazon.
Just a few years ago, cloud computing was one of the hottest tech trends as companies shifted their attention to software and services that they and their customers could access anywhere. As a result, Amazon and other competitors built massive data centers to meet all of the demand, with Amazon leading the pack and Microsoft and Alphabet's Google following behind.
Fast forward to today, and cloud computing is still a must-have for many companies, and Amazon Web Services Amazon Web Services (AWS) still leads the pack. What's more, artificial intelligence is spurring a massive uptick in data center spending -- Nvidia's CEO thinks up to $4 trillion will be spent over the next five years -- to process complex AI systems.
The benefit for Amazon is far from realized. Research from Goldman Sachs says global AI cloud sales could reach $2 trillion by 2030. As the cloud services leader, Amazon is sure to benefit. The company has impressive operating margins of about 37%, making the company's cloud sales a very lucrative business for years to come.
Amazon's ad business used to be just an afterthought that investors didn't pay much attention to. And why would they? The company didn't even begin reporting advertising sales until 2022. But as the company's focus on ads has grown, so has its opportunity.
Amazon now has the third-largest digital ad platform in the U.S. after Alphabet and Meta, and Amazon will take about 17% of the market in 2026. Digital advertising is poised to become a $429 billion market by 2029, making it all the more important to Amazon in the coming years.
Amazon enjoys a unique benefit from this space because it can both sell ads to companies looking to gain new customers and benefit when those people purchase products through Amazon's e-commerce platform. This double-dip scenario should help Amazon to weather any potential downturns from the cyclical nature of the ad market.
And let's not forget Amazon's largest opportunity, e-commerce. The company continues to lead the pack despite competitors trying to imitate Amazon's delivery process and online deals. The company holds an estimated 40% of the market in U.S. e-commerce, leaving Walmart with just 13% and Target with only 2%.
Amazon continues to add new value in Prime membership, like grocery delivery and even healthcare services, which make the annual $139 membership well worth the cost to millions of customers. Prime members in the U.S. spend nearly $1,200 more annually than non-Prime members. And with the company boasting a global membership of about 240 million, the company has a massive number of customers locked into its vast e-commerce ecosystem.
With Amazon's massive lead in e-commerce, its growing opportunity as a top digital advertising company, and artificial intelligence cloud computing just getting started, buying Amazon stock now and holding for years to come should prove to be a wise strategy.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Goldman Sachs Group, Meta Platforms, Microsoft, Nvidia, Target, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.