Could Investing $10,000 in Amazon Stock Make You a Millionaire?

Core Insights - Amazon's stock is down 14% in 2025, significantly underperforming the S&P 500, which is down 6% [1] - Current valuations for Amazon stock are the lowest in over a decade, presenting a potential investment opportunity [2] - Amazon holds a dominant position in e-commerce, accounting for approximately 38% of U.S. e-commerce sales [2] Group 1: Business Strategy and Growth - Amazon is actively restructuring its distribution channels and utilizing robotics to enhance fulfillment efficiency, achieving a 25% faster processing rate and expected 25% cost savings [3] - The e-commerce sector continues to grow, and Amazon's ongoing product additions and delivery improvements make it an attractive option for consumers transitioning to online shopping [4] - Significant investments in generative AI, with expectations to spend over $100 billion this year, are seen as a major growth driver for Amazon Web Services (AWS) [4][5] Group 2: Financial Performance - Despite a slowdown in sales growth, Amazon reported an 11% increase in sales for 2024, with operating income rising by 86% [6] - Amazon's stock is currently trading at a price-to-earnings (P/E) ratio of 34, just above a 10-year low, indicating potential value for investors [10] Group 3: Market Challenges - New tariffs pose a risk to Amazon's business, particularly affecting sellers from China, which could impact Amazon's online store performance [7][8] - Amazon's diversified supply chain and business segments, such as AWS and advertising, provide some protection against the negative effects of tariffs [9]