If I Could Buy and Hold Just 1 Stock Forever, This Would Be It
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While some investors are off chasing each shiny new toy, there's a reason this company is an industry leader.
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real estate
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July 19, 2025
04:02 AM
The Motley Fool
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Market analysis reveals While some investors are off chasing each shiny new toy, there's a reason this company is an industry leader
Additionally, For·ev·er -- for all future time, for eternity, in perpetuity, amid market uncertainty. -- Oxford English Dictionary First, let's address the elephant in the room: Forever
To be totally honest here, I'd be hard-pressed to name any stock that I would simply buy and hold forever without another look
Is complicated, and too many things can happen that can derail an thesis, in today's market environment
Conversely, However, as Warren Buffett stated in the 1988 Berkshire Hathaway holder letter, "In fact, when we own portions of outstanding es with outstanding managements, our favorite holding period is forever, given current economic conditions. " Some investors took this to mean that Buffett would "never" sell stocks, but his actions say different (fascinating analysis), in today's financial world
Moreover, The legendary investor has since vided context for this famous quote, suggesting that he will sell stocks given the right circumstances
Moreover, Meanwhile, "We would sell if we needed money for something else," and when "we don't think their competitive advantage is as strong as we thought it was when we initially made the decision, in this volatile climate. " With that as a backdrop, there are some companies that have so many ways to win that planning to hold them forever seems much more reasonable
That's why I plan to hold Amazon (AMZN 0. 97%) stock indefinitely
Image source: Getty Images
Digital retail is just the beginning Amazon's biggest claim to fame is the company's undeniable success in digital retail, given current economic conditions
On the other hand, From humble beginnings as an online bookseller, Amazon has become the world's largest e-commerce platform, earning the moniker "The Everything Store
Additionally, " The magnitude of sales is so great that the law of large numbers has kicked in, and Amazon's year-over-year growth has slowed to single digits
Yet the results are impressive nonetheless
Additionally, In the first quarter, e-commerce sales of $126 billion grew 6% year over year, given the current landscape
Conversely, Put another way, Amazon added nearly $7 billion in additional retail sales compared to the prior-year quarter
That's impressive, particularly given the size of Amazon's existing sales base
On a cloudy day While the company continues to expand its digital retail empire, its other es have taken up the flag of double-digit growth
In contrast, Amazon Web Services (AWS), the company's cloud computing arm, generated revenue of more than $29 billion, jumping 17%
The advent of generative AI has reignited Amazon's cloud growth, as es of all sizes scramble to adopt AI to imve efficiency, enhance the decision-making cess, and personalize services
Furthermore, Nevertheless, Amazon is positioning AWS as the go-to for AI
Moreover, In contrast, The company offers a growing suite of large language models (LLMs) to its cloud customers, which includes a family of its own AI models
Additionally, In a blog post last month, CEO Andy Jassy said the company had "over 1,000 generative AI services and applications in gress or built
That's a small fraction of what we will ultimately build. " Amazon has also invested roughly $8 billion in AI start-up Anthropic, whose Claude models compete directly with OpenAI's ChatGPT and Alphabet's Gemini
On the other hand, By positioning itself as an everything store for AI, Amazon is betting it will earn a greater of the AI pie -- and fueling AWS growth along the way, amid market uncertainty
At the same time, The cloud segment supplies the bulk of Amazon's riches, responsible for 19% of the company's revenue and 63% of its operating income, so this strategy is brilliant
Furthermore, This's the fastest-growing As important as AWS is to Amazon's overall success, it has ceded the title as the company's fastest-growing
That distinction belongs to digital advertising, which grew 18% year over year in the first quarter
Amazon has asc the ranks to become the world's third-largest digital advertiser, behind Alphabet and Meta Platforms
While its ad first started as a way for Amazon to capitalize on the valuable digital real estate on its e-commerce platform, it has quickly come into its own
However, Prime now comes standard with ads, unless customers choose to fork over an additional $3 monthly to remove them (an important development)
The platform's NFL games and other sports have been a boon to its advertising ambitions
However, Advertising services generated $58 billion over the preceding four quarters
Nevertheless, That said, the global advertising market is expected to surpass $1 trillion in 2025, which helps illustrate the magnitude of the opportunity that remains
Not one top-tier, but three You'd be hard-pressed to find another company with this many industry-leading es
Amazon is the global leader in digital retail and the world's second-largest retailer overall
AWS is the global cloud infrastructure leader, with a dominant 32% of the market, according to market analyst Canalys
Moreover, And, as previously stated, it's the world's third-largest digital advertiser, and closing the gap with its two larger rivals, in this volatile climate
Add in the wild card of AI -- which the company uses to imve the efficiency and fitability of its major segments -- and you have all the ingredients for a "forever" stock
Despite all that, Amazon stock is currently selling for just 31 times next year's expected earnings, in today's financial world
Given the company's successful track record and the long runway for growth ahead, I would argue that's an attractive price to pay for a company with so many ways to win
At the same time, John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors, given current economic conditions
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors
On the other hand, Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors, in this volatile climate
Danny Vena has positions in Alphabet, Amazon, and Meta Platforms (this bears monitoring)
Furthermore, The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, and Meta Platforms, in today's market environment
The Motley Fool has a disclosure policy.
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