Why Investors Should Consider Washington-Based Amazon for Long-Term Success

Investors seeking long-term success should take a close look at Amazon, based in Washington. The company exemplifies resilience and innovation, rising from its humble beginnings as an online bookstore in 1995 to become a leading global enterprise. With a market capitalization of approximately $2.3 trillion, Amazon ranks as the fifth-largest publicly traded company worldwide.
Amazon’s Growth Journey
Amazon’s ascent began when it went public in 1997, shortly after expanding its product lines beyond books to music and DVDs. By 2000, it had started selling a variety of items, including home improvement products and video games. The introduction of a marketplace for third-party sellers was pivotal, propelling Amazon to e-commerce dominance.
Expansion into Cloud Computing
In 2002, Amazon launched Amazon Web Services (AWS), marking its entry into cloud computing. Innovations like Amazon Prime, Kindle, and Fire streaming sticks further diversified its offerings. The company is notably invested in Rivian Automotive, enhancing its delivery capabilities with electric vehicles.
The AWS Advantage
The cloud computing sector is rapidly expanding. Grand View Research estimates the global cloud market, valued at $752 billion in 2024, will reach nearly $2.4 trillion by 2030, demonstrating a compound annual growth rate of 20.4%. Businesses are increasingly turning to cloud services, particularly as they adopt more artificial intelligence (AI) technologies.
Financial Performance of AWS
Metric (in Billions) | North America | International | AWS |
---|---|---|---|
Net Sales | $100.068 | $36.761 | $30.873 |
Operating Expenses | $92.551 | $35.267 | $20.713 |
Operating Income | $7.517 | $1.494 | $10.160 |
Profit Margin | 7.5% | 4.1% | 32.9% |
Sales Growth (YOY) | 11.14% | 14.54% | 17.47% |
In the second quarter of 2025, AWS contributed significantly to Amazon’s net income, boasting a profit margin of 32.9%. The e-commerce sector brought in over $136 billion in sales, yet its operational costs remain high.
Future Prospects for Amazon
Amazon holds the number one position in cloud computing, commanding a 30% market share, which surpasses major competitors like Microsoft Azure and Google Cloud. With plans to invest $100 billion in AI infrastructure, the company seeks to strengthen its market advantage and expand its presence in international e-commerce.
In conclusion, Amazon’s rich history of innovation, coupled with its strong position in cloud computing, positions it as a compelling choice for long-term investors. This continues the legacy of growth and resilience rooted in its Pacific Northwest origins.