Here's how Amazon can become a $5 trillion company by 2028: The Wall Street consensus says earnings will grow at 19% annually over the next three years, which makes the current valuation of 34 times earnings look reasonable. But Amazon beat the consensus estimate by an average of 23% in the last six quarters. If that continues, its market value could hit $5 trillion by late 2028 while the price-to...
Here's how Amazon can become a $5 trillion company by 2028: The Wall Street consensus says earnings will grow at 19% annually over the next three years, which makes the current valuation of 34 times earnings look reasonable. But Amazon beat the consensus estimate by an average of 23% in the last six quarters. If that continues, its market value could hit $5 trillion by late 2028 while the price-to-earnings (P/E) ratio drops to 33. Looking ahead, retail e-commerce sales are projected to increase at 10% annually through 2030, according to Straits Research. Ad tech spending is forecast to grow at 14% annually through 2030, according to Grand View Research. And cloud services spending is projected to increase at 22% annually through 2030, according to Goldman Sachs . That means Amazon has powerful growth drivers in its three core businesses. Amazon Web Services (AWS) dominates the cloud infrastructure and platform services market with 41% market share, according to Gartner . Cloud computing revenue growth accelerated to 20% in the third quarter as AWS continued to benefit from demand for AI. "AWS is where the preponderance of companies' data and workloads reside, and part of why most companies want to run AI on AWS," CEO Andy Jassy said. Amazon is deploying artificial intelligence (AI) products and tools across its three core businesses -- retail e-commerce, digital advertising, and cloud computing -- to not only increase revenue, but also to improve profitability. Non-GAAP operating margin increased nearly 2 percentage points in the past year due in part to efficiency gains in the retail business driven by generative AI tools. Alphabet is worth $3.9 trillion. The stock must add about 28% for the company's market value to hit $5 trillion. Reaching that level by the end of 2028 implies annual returns of 9% over the next three years. Amazon is worth $2.6 trillion. The stock must add about 92% for the company's market value to hit $5 trillion. Reaching that level by the en...
Key Points Nvidia and Palantir Technologies are collectively worth $4.9 trillion; Amazon and Alphabet could exceed that figure by the end of 2028. Amazon's cloud AI services are driving revenue growth, and internal generative AI tools are making the company more profitable. Alphabet's Google Cloud is gaining market share in cloud computing due in part to demand for custom AI chips and Gemini model...
Key Points Nvidia and Palantir Technologies are collectively worth $4.9 trillion; Amazon and Alphabet could exceed that figure by the end of 2028. Amazon's cloud AI services are driving revenue growth, and internal generative AI tools are making the company more profitable. Alphabet's Google Cloud is gaining market share in cloud computing due in part to demand for custom AI chips and Gemini models. 10 stocks we like better than Amazon › Nvidia is the world's most valuable company, with a market capitalization of $4.5 trillion. Meanwhile, Palantir Technologies is worth $400 billion. That brings their collective valuations to $4.9 trillion. I think Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) can top that figure by 2028. Here's what that implies for shareholders: Amazon is worth $2.6 trillion. The stock must add about 92% for the company's market value to hit $5 trillion. Reaching that level by the end of 2028 implies annual returns of 24% over the next three years. Alphabet is worth $3.9 trillion. The stock must add about 28% for the company's market value to hit $5 trillion. Reaching that level by the end of 2028 implies annual returns of 9% over the next three years. Here's what investors should know about Amazon and Alphabet. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 1. Amazon Amazon is deploying artificial intelligence (AI) products and tools across its three core businesses -- retail e-commerce, digital advertising, and cloud computing -- to not only increase revenue, but also to improve profitability. Non-GAAP operating margin increased nearly 2 percentage points in the past year due in part to efficiency gains in the retail business driven by generative AI tools. Amazon Web Services (AWS) dominates the cloud infrastructure and platform services market with 41% market share, according to Gartner. Cloud computing revenue growth accelerated to 20% in...
Now that artificial intelligence platforms are proven and refined, the world needs a way of making it readily accessible to all prospective users. As much as the artificial intelligence (AI) industry has grown just since the late-2022 launch of ChatGPT, it's still only a fraction of what it's likely to become. Analysts with Cathie Wood's Ark Invest family of exchange-traded funds (ETFs) predict sp...
Now that artificial intelligence platforms are proven and refined, the world needs a way of making it readily accessible to all prospective users. As much as the artificial intelligence (AI) industry has grown just since the late-2022 launch of ChatGPT, it's still only a fraction of what it's likely to become. Analysts with Cathie Wood's Ark Invest family of exchange-traded funds (ETFs) predict spending on AI infrastructure -- data centers, mostly -- is set to soar from last year's $500 billion to $1.4 trillion in 2030, jibing with an outlook from JPMorgan. That's annualized growth of more than 20%, offering investors an opportunity that's just too good to pass up. But which stocks are best positioned to benefit from the industry's expansion? Probably not AI chipmaker Nvidia or its hardware peers; their very highest-growth days are arguably behind them. From here, it's the names building these AI data centers with the most to gain. With that as the backdrop, here are three to consider adding to your portfolio this year. 1. Vertiv Vertiv (VRT 0.69%) isn't a data center stock per se. But data centers of the future will look considerably different -- for the better -- than they do now because of this company. In short, Vertiv helps AI data centers handle the massive amount of heat their equipment creates. It's always been a problem for any computer equipment, initially solved with simple fans and adequate air conditioning. As computing processors and racks of tethered motherboards have become more powerful and densely packed, their heat output increasingly risks permanent damage to this equipment. That's why Global Market Insights predicts the worldwide data center cooling market is set to grow at an average pace of more than 10% per year through 2034, led by the liquid-cooling solutions of the business, according to an outlook from Precedence Research. This projection plays right into the heart of Vertiv's portfolio of offerings. Although it offers a range of conventi...
Ayman Hussain/iStock via Getty Images Introduction: Ouster, Inc. ( OUST ) is a company that specializes in creating LiDAR sensors and related software tools that enable customers to get the most out of these hardware solutions. The firm's digital LiDAR technology has helped the company shift into a new era, and upcoming developments of new SoC devices, along with a handful of exciting new partners...
Ayman Hussain/iStock via Getty Images Introduction: Ouster, Inc. ( OUST ) is a company that specializes in creating LiDAR sensors and related software tools that enable customers to get the most out of these hardware solutions. The firm's digital LiDAR technology has helped the company shift into a new era, and upcoming developments of new SoC devices, along with a handful of exciting new partnerships, demonstrate that this business has solid potential over the long run. However, I believe that shares trade at too rich a valuation at the moment, especially relative to some of its peers. Therefore, I am rating shares of Ouster a sell, with the potential for an upgrade in the future once the valuation becomes more reasonable, given the solid fundamentals of the business. Business Description & Key Considerations: Ouster's two primary products are the Ouster Sensor (OS), which is a scanning sensor, and the Digital Flash, which is a solid-state flash sensor. The former is used by companies like robotaxi operators who need equipment with a full 360-degree view to detect objects in every direction, whereas the latter is often purchased by automakers for use in advanced driver assistance systems (ADAS). Both of these sensors are built on the firm's digital LiDAR technology, which is an architecture designed around using just two chips instead of the thousands of individual lasers found in analog LiDAR devices. The first component of Ouster's digital LiDAR system is a system-on-a-chip (SoC) device with single-photon avalanche diode (SPAD) detectors. Essentially, these chips can detect the smallest possible unit of light, even at far distances of over 200 meters. The other components are Ouster's proprietary vertical cavity surface emitting lasers (VCSELs). This is massively beneficial compared to using legacy edge-emitting lasers, as VCSELs are printed onto a single chip (meaning they can be packed with far more lasers across a smaller surface area). Additionally, since VCS...
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the AI Stocks Analysts Are Watching. On January 22, Phillip Securities analyst Alif Fahmi initiated coverage on the stock with a Buy rating and a price target of $208. The firm holds a strong conviction in Palantir’s AI-driven growth, US market strength, and attractive forward valuation. It anticipates group revenue to grow 47% year on year to $4....
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the AI Stocks Analysts Are Watching. On January 22, Phillip Securities analyst Alif Fahmi initiated coverage on the stock with a Buy rating and a price target of $208. The firm holds a strong conviction in Palantir’s AI-driven growth, US market strength, and attractive forward valuation. It anticipates group revenue to grow 47% year on year to $4.2 billion in FY25. With revenue mix shifting, commercial revenue is likely to increase 51%, compared with government revenue of 43% as more companies increasingly adopt artificial intelligence and use cases expand beyond defense. Net profit is forecast to nearly double in FY25e. US growth, which is Palantir’s largest market at 66% of revenue, is expected to grow 66% year over year in FY25. This growth is supported by government demand amid geopolitical tensions and increasing US intelligence spending, as well as stronger commercial demand. US growth, Palantir’s largest market at 66% of revenue, is accelerating 66% YoY in FY25e, driven by government demand amid geopolitical tensions and rising US intelligence spending, and by US Commercial deal values surging ~2x YoY in 3Q25 on AIP adoption and ontology-driven productivity. We initiate coverage of Palantir with a DCF-based target price of US$208. The firm’s model assumes a WACC of 8.3%, a risk-free rate of 4.2%, and a terminal growth rate of 8%. With the forward P/E sitting at 170x as of January 16, 2026; the firm noted that it could allow a potential rerating supported by improving fundamentals and a growing addressable market. Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our...
Middle East businesses are watching tensions between Saudi Arabia and the United Arab Emirates with increasing nervousness, concerned it could impact commerce at a time when both nations are emerging as powerhouses of regional trade and finance. Those tensions erupted into the open in December when the kingdom gave UAE forces 24 hours to withdraw from Yemen, and Saudi media has since ramped up rhe...
Middle East businesses are watching tensions between Saudi Arabia and the United Arab Emirates with increasing nervousness, concerned it could impact commerce at a time when both nations are emerging as powerhouses of regional trade and finance. Those tensions erupted into the open in December when the kingdom gave UAE forces 24 hours to withdraw from Yemen, and Saudi media has since ramped up rhetoric against its eastern neighbor. While no formal diplomatic or commercial measures have been taken, some companies operating in both countries have begun contingency planning to ensure business continuity should the situation escalate further, according to people familiar with the matter, who requested anonymity in order to discuss private deliberations. For international firms and investors, the situation is evoking memories of the more than three-year blockade of Qatar — imposed by Saudi Arabia, the UAE, Bahrain and Egypt — that began in 2017 and disrupted regional supply chains. Adding to their anxiety about regional stability, President Donald Trump said last week that an “ armada ” of US Navy vessels was heading to the Middle East as he continues to threaten Iran with strikes. Read More: Saudi Arabia Moves to Rein In UAE as Yemen Exposes Rivalry “At this stage, companies are not reacting operationally; they are asking baseline questions,” said Hussein Nasser-Eddin, chief executive officer of Dubai-based security services provider Crownox. “Most inquiries focus on financial resilience in case of escalation and whether there are any early diplomatic or consular shifts.” Some UAE-based firms have reported problems securing Saudi business visas, the people said. It’s not clear how widespread the issue is or whether it marks a change of policy by the Saudi government, which has been pushing for companies to have their regional headquarters in the kingdom for several years. At least one UAE-based supplier to Saudi Arabia is weighing whether to start building inventory as ...
AndreyPopov/iStock via Getty Images Investment Thesis Firefly Aerospace ( FLY ) appears to have regained traction after its failed rocket mission back in September. However, the trouble I have is that once we look beyond its alluring narrative, its fundamentals rapidly break down. For one, its growth rates are erratic and challenging to forecast. Secondly, its management team doesn't have a lot of...
AndreyPopov/iStock via Getty Images Investment Thesis Firefly Aerospace ( FLY ) appears to have regained traction after its failed rocket mission back in September. However, the trouble I have is that once we look beyond its alluring narrative, its fundamentals rapidly break down. For one, its growth rates are erratic and challenging to forecast. Secondly, its management team doesn't have a lot of skin in the game. And lastly, but perhaps most importantly, the business is far from breakeven on its free cash flow line. That being said, it's not all bad. As you know, the stock has already lost a lot of steam post-IPO. So, naturally, the question that surfaces is " ...and now what ?" Presently, I don't see the risk-reward as being overly compelling, but I will keep a close eye on upcoming developments. In short, I'm neutral on this stock. Firefly Aerospace's Near-Term Prospects Firefly builds rockets and lunar landers. Its customers are mostly government and defense agencies, plus commercial entities, who need reliable and lower-cost ways to launch things and move around in space. The idea being that Firefly provides a little of everything to get missions done while being cheaper than legacy aerospace approaches. Plus, what truly drives the bull case is that Firefly already holds a $1.3 billion backlog . Not to mention that Firefly is one of the very few companies that has actually landed on the Moon and delivered payloads successfully ( page 82 ). There's no doubt that its pipeline is expanding, and the story is one of being in the right sector, with enticing prospects, but as an investor, I am not fully sold on its fundamentals, which we delve into next. Revenue Growth Rates Are Challenging to Predict FLY revenue growth rates After spending a considerable amount of time on the company's S-1 filing (IPO registration file), I have not been able to reconstruct what Firefly's Q4 2024 revenues reached. As a consequence, even though Firefly guides for its full year 2025, i...
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Morning, I’m Louise Moon from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. Inflation at the till is showing no signs of letting up. Prices in shops rose 1.5% this month to the highest level in almost two years, largely driven by the cost of food, according to the British Retail Consortium. While that’s another blow for shoppers, retailers are grappli...
Morning, I’m Louise Moon from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories. Inflation at the till is showing no signs of letting up. Prices in shops rose 1.5% this month to the highest level in almost two years, largely driven by the cost of food, according to the British Retail Consortium. While that’s another blow for shoppers, retailers are grappling with higher energy bills and national insurance contributions. It comes as Boston Consulting Group found that boosting government investment in energy infrastructure would lift long-run economic growth more than other forms of spending. UK firms have some of the highest energy costs in the developed world. “Retailers do what they can to keep prices down in a competitive market, but thin margins and rising costs of government policy make it harder,” said BRC CEO Helen Dickinson. What’s your take? Ping me on X , LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond. What We’re Watching William Hill-owner Evoke continues to review strategic options, including a sale, after tax hikes in the budget “dealt a significant blow”. It’s been closing stores and cutting costs. Shares slumped more than 7% at the open. Dr Martens aims to open in more Latin American markets in a “capital light” manner, through extending a distribution agreement. It remains on track for profit growth in what it calls a “year of pivot”. It says Europe remains challenging, with shares falling in early trading. FTSE Russell , part of the London Stock Exchange Group, is proposing to ease entry rules for foreign firms to join the UK stock indexes. It’s mulling cutting the minimum free-float requirement from 25% to 10%, in what would be the latest reform to try and attract listings. The government has capped ground rents paid by leaseholders in England and Wales at £250 a year , as per its manifesto...
Adams Diversified Equity Fund Inc. trimmed its stake in shares of Apple Inc. (NASDAQ:AAPL - Free Report) by 1.0% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 822,900 shares of the iPhone maker's stock after selling 8,100 shares during the period. Apple comprises about 7.1% of Adams Diversified Equity Fund I...
Adams Diversified Equity Fund Inc. trimmed its stake in shares of Apple Inc. (NASDAQ:AAPL - Free Report) by 1.0% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 822,900 shares of the iPhone maker's stock after selling 8,100 shares during the period. Apple comprises about 7.1% of Adams Diversified Equity Fund Inc.'s holdings, making the stock its 3rd biggest position. Adams Diversified Equity Fund Inc.'s holdings in Apple were worth $209,535,000 at the end of the most recent reporting period. Get Apple alerts: Sign Up Several other large investors also recently bought and sold shares of AAPL. ROSS JOHNSON & Associates LLC lifted its stake in shares of Apple by 1,800.0% during the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker's stock worth $42,000 after purchasing an additional 180 shares during the period. Nexus Investment Management ULC increased its stake in Apple by 333.3% in the second quarter. Nexus Investment Management ULC now owns 260 shares of the iPhone maker's stock valued at $53,000 after purchasing an additional 200 shares during the last quarter. LSV Asset Management acquired a new stake in shares of Apple in the fourth quarter worth approximately $65,000. Morgan Dempsey Capital Management LLC increased its holdings in shares of Apple by 41.0% during the 2nd quarter. Morgan Dempsey Capital Management LLC now owns 430 shares of the iPhone maker's stock worth $88,000 after buying an additional 125 shares during the last quarter. Finally, HFM Investment Advisors LLC purchased a new position in shares of Apple in the 1st quarter worth $99,000. Institutional investors and hedge funds own 67.73% of the company's stock. Wall Street Analysts Forecast Growth Several equities analysts have recently weighed in on the company. Jefferies Financial Group set a $276.47 price objective on Apple and gave the company a "hold" rating in a research ...
AEGON ASSET MANAGEMENT UK Plc trimmed its holdings in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 2.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 223,044 shares of the electric vehicle producer's stock after selling 6,687 shares during the period. Tesla accounts for about 1.2% of AEGON...
AEGON ASSET MANAGEMENT UK Plc trimmed its holdings in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 2.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 223,044 shares of the electric vehicle producer's stock after selling 6,687 shares during the period. Tesla accounts for about 1.2% of AEGON ASSET MANAGEMENT UK Plc's investment portfolio, making the stock its 17th biggest holding. AEGON ASSET MANAGEMENT UK Plc's holdings in Tesla were worth $99,150,000 at the end of the most recent quarter. Get Tesla alerts: Sign Up Other hedge funds have also modified their holdings of the company. Relyea Zuckerberg Hanson LLC boosted its stake in Tesla by 0.4% in the 3rd quarter. Relyea Zuckerberg Hanson LLC now owns 6,558 shares of the electric vehicle producer's stock worth $2,916,000 after purchasing an additional 23 shares during the period. Equita Financial Network Inc. lifted its holdings in shares of Tesla by 2.8% in the third quarter. Equita Financial Network Inc. now owns 855 shares of the electric vehicle producer's stock valued at $380,000 after purchasing an additional 23 shares in the last quarter. VanderPol Investments L.L.C. boosted its position in shares of Tesla by 2.2% during the third quarter. VanderPol Investments L.L.C. now owns 1,070 shares of the electric vehicle producer's stock worth $464,000 after buying an additional 23 shares during the period. Resonant Capital Advisors LLC grew its holdings in shares of Tesla by 0.3% during the third quarter. Resonant Capital Advisors LLC now owns 8,577 shares of the electric vehicle producer's stock worth $3,814,000 after buying an additional 23 shares in the last quarter. Finally, Pinnacle Bancorp Inc. boosted its holdings in Tesla by 4.1% during the third quarter. Pinnacle Bancorp Inc. now owns 609 shares of the electric vehicle producer's stock worth $271,000 after purchasing an additional 24 shares during th...