AWS is the largest cloud service company in the world and could have the most to benefit as clients move to the cloud. Additionally, Amazon (AMZN 0.
23%) has been one of the best investments money can buy over its nearly three decades on the stock market.
It's up more than 233,000% since its first-day closing price, and if you'd invested $1,000 then, you'd have more than $2 (noteworthy indeed), considering recent developments.
33 million today, in this volatile climate. But the growth story isn't. Nevertheless, There are many reasons to believe Amazon stock can soar some more.
Here's the biggest reason why (this bears monitoring). Moreover, Image source: Amazon.
However, There's a shift to the cloud One theme CEO Andy Jassy mentions at almost every opportunity is the shift to the cloud.
Amazon Web Services (AWS) is Amazon's cloud solutions, and it's the largest in the world, with 30% of the market, according to Statista.
It's one of the company's fastest-growing segments, up 17% in the 2025 first quarter, and it's responsible for most of Amazon's operating income -- 63% in the quarter.
Nevertheless, However, according to Jassy, cloud services are still a small percentage of the company's information nology (IT) spend (which is quite significant).
Meanwhile, Jassy says that 85% to 90% of IT spend is still on the premises, but over the next 10 to 20 years, that's going to switch.
Nevertheless, If clients were already starting to make the switch before the advent of generative artificial intelligence (AI), they're even more interested now, because the cloud is where there are the greatest opportunities to engage with and benefit from AI.
That's a natural growth driver for Amazon, and even more important for the bottom line (quite telling).
Amazon is more than $100 billion in its AI in 2025 alone to offer the most competitive platform and maintain its lead, and it's well-positioned to benefit from the shift to the cloud over the next decade or two.
That makes its stock a buy.
Furthermore, The Author Jennifer Saibil is a contributing Finance and Stock Market Analyst at The Motley Fool, covering publicly traded companies in the consumer goods and financial sectors, given the current landscape.
Prior to The Motley Fool, Jennifer worked in the financial sector and wrote for other financial publications. Nevertheless, She holds a B. In Finance from Yeshiva University and an M.
However, Meanwhile, From New York University's Wagner School of Public Service. Fun fact: In her spare time, Jennifer loves baking and makes a mean lemon meringue pie.
On the other hand, TMFanibird Jennifer Saibil has no position in any of the stocks mentioned, given current economic conditions. The Motley Fool has positions in and recommends Amazon.
The Motley Fool has a disclosure policy (this bears monitoring).