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7 Reasons Amazon Is One Of The Best Stocks To Buy In 2020

7 Reasons Amazon Is One Of The Best Stocks To Buy In 2020

Posted On February 7, 2020 4:29 am
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Amazon.com (NASDAQ:AMZN) finished out 2019 on a strong note. Sales in the company’s recently reported fourth quarter handily beat analysts’ estimates, and earnings per share crushed expectations, sending the stock soaring to all-time highs and pushing Amazon’s market cap to more than a trillion dollars.

As investors look back on the e-commerce and cloud computing giant’s record year, here are some of the most notable highlights.

$280.5 billion

Amazon’s total sales in 2019 were $280.5 billion, up 20% from sales of $232.9 billion in 2018. But even this growth rate understates the company’s strong top-line momentum, as sales were up 22% year over year when excluding unfavorable impacts from year-over-year changes in foreign exchange rates during 2019.

$23.01

Long gone are the years when Amazon struggled to report regular profits. The company’s net income during 2019 rose to a record $11.6 billion. This translated to earnings per share of $23.01 — up from $20.14 in 2018.

$25.8 billion

Amazon’s profitability also shows up on its cash flow statement. Free cash flow, or cash from operations less capital expenditures, rose 33% year over year to $25.8 billion.

37%

Revenue from the company’s cloud computing business, Amazon Web Services (AWS), continues to grow at a much faster rate than the company’s consolidated business. AWS revenue in 2019 rose 37% year over year to $35 billion.

This put AWS revenue at 12.5% of total 2019 revenue, up from…

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Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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