In online stock trading you need to keep your mind open to attractive stocks to buy, in surprising places. The industry in which the stock operates may be growing by leaps and bounds and have reached massive highs, naturally fueling the thought process that the stocks in the industry may be out of reach – too expensive to buy. But considering the further growth opportunity of the stock and the industry it operates in, there could be some very attractive stocks out there that could give you really great returns.

Motley Fool analysts recommend some tech stocks for August. Tech investors have had quite a great year, with the $XLK (Technology Select SPDR ETF) being 13% up year to date. That would amount to over double the S&P 500 return overall. That shows the tech sector is really going places. But even then, when you expect soaring prices, you have some great stocks with amazing potential but are affordable to buy. One of the Motley Fool analysts has zeroed in on Amazon ($AMZN).

Why Amazon Holds So Much Promise

Analyst Danny Vena believes there is much promise in ecommerce giant Amazon. And it’s not hard to see why. Amazon has singlehandedly revolutionized the retail segment through its convenient and reliable online shopping. But the growth hasn’t stopped. In fact, it has accelerated. Though other ecommerce companies have emerged, Amazon had still managed to get hold of 44% of last year’s digital purchases in the United States last year. That accounted for around 4% of all the retail sales in the country. All this contributed to revenue worth $32 billion just from Amazon’s North American ecommerce operations. Moving to international markets, Amazon is getting close to breakeven. The investments are being made for the company to dominate the global ecommerce market.

Cloud Computing Is More Lucrative for Amazon

But the interesting part is that ecommerce isn’t the only lucrative business for Amazon. In fact, the most lucrative business opportunity for the company is cloud computing, with its Amazon Web Services (AWS) getting more and more popular. In the last quarter, digital sales contributed to $47 billion of the $53 billion total revenue of Amazon, though they only generated an operating income of $1.3 billion. AWS revenue in that period, however, soared 49% year over year and touched $6.1 billion. It generated an operating income of $1.6 billion for Amazon and that’s an increase of 79%. The margins generated are almost 27%. Cloud computing now contributes to 11.5% of revenue for Amazon. That’s a rise of 7.8% from three years back. So AWS has contributed to 62% of Amazon’s operating income thus far this year.

More Income for Amazon to Invest in Other Lucrative Areas

As a result of the cloud business generating significant cash, Amazon has the financial might for expanding its operations internationally. It has been investing in artificial intelligence (AI), which certainly is a growing segment for the company. Its music streaming and Prime video streaming segments are also significantly being invested in by Amazon.

So the unique situation Amazon is in now, is that ecommerce is the biggest business and core activity of Amazon. But the most income is generated from cloud services. That makes Vena suggest Amazon as a great buy. There is a lot, lot more to come.

Identifying such opportunities is the secret to success in online stock trading. With advanced but free trading software offered by TradeZero, you have a great view of the markets so you can identify stocks with potential. Give us a call at +1 954-944-3885. You can also email us at support@tradezero.co.

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