To succeed in online stock trading, you don't just go by your intuition and feelings, but what experienced analysts consider as well. What analysts and investors think about a stock sometimes makes a big difference to its outlook. The stock suddenly becomes attractive.

As per this Motley Fool article, experienced analyst John Blackledge of Cowen believes Amazon ($AMZN) is the best stock he has chosen. He believes the company has strong prospects for revenue growth and more expansion of margin. This is despite the shares having fallen around 18% since the 1st of October. Coupled with this bullish feeling from the analyst, Amazon shares have a really attractive valuation.

Amazon Has Enough Avenues for Robust Revenue Growth

Blackledge believes there are various drivers for robust revenue growth globally for Amazon. The B2C ecommerce market is eyed by Blackledge as where Amazon could post further market share gains, particularly in large retail verticals as well as emerging verticals such as B2B. There are also further opportunities in newer markets, reckons Blackledge. Amazon Web Services (AWS) revenue has been pointed out by the analyst as an opportunity for growth. He believes the revenue from AWS can get compounded between 2019 and 2024 at a 31% average rate. He also considers advertising to be in the nascent stage for Amazon. So there is massive opportunity for revenue margins and growth. And he does have a point, since these really seem to be growth avenues.

Blackledge estimates that all these catalysts will bring about a consolidated annualized revenue growth of 17% in the course of the coming five years. The analyst's 12-month price target is $2,250.

Significant Sales Growth in Ecommerce

Apple's core business, ecommerce, has itself seen significant sales growth recently. Online stores sales, subscription services, and services for third-party sellers are the primary contributors.

  • Its online store sales revenue rose to $29 billion in Q3, a 10% year over year growth.
  • Though it may be a major deceleration from the 2017 Q3 growth of 22%, the company’s subscription and third-party seller services had a massive 52% and 31% Q3 growth year over year, respectively.
  • In Q3 these segments contributed revenue in the region of $14.1 billion.
That makes them vital growth catalysts of the company's business.

Cloud Computing Proves Lucrative

The Amazon Web Services cloud computing division of Amazon might account for only 11% of the total revenue, but it made up around 60% of the operating income of the company during the trailing 9-month period. AWS operating income and revenue in Q3 were up 77% and 46% respectively, year over year. During the trailing nine-month period, operating income and revenue from AWS soared 72% and 48% respectively.

International Business and Advertising

Amazon's international business is quite strong. Revenue rose 29% year over year in Q3. That was a major growth from just 13% during the year-ago quarter. The international business makes up around a third of the consolidated revenue of Amazon. Amazon has an international expansion plan, and that could significantly contribute to the company's growth.

Advertising makes up the bulk of what’s classified as Amazon's "other" segment. And this other segment can also be a major growth and expansion factor for Amazon. Advertising is expected to become the fastest growing business for Amazon. Revenue from the other segment soared 122% year over year in Q3. The company has admitted that the growth in its advertising revenue is starting to positively impact the gross profit margin overall for the company.
Of course, the target of the analyst is Amazon hitting $2,250. But will that happen next year itself? These certainly are areas where we can see the momentum building up.

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