Amazon Stock (AMZN) Outpaces Dow: Surges 20% in 3 Months

Jaxon Gaines
Source: Reuters

Amazon (AMZN) stock has been one of the top performers on the US stock market in 2024. The stock has even outpaced the Dow Jones in the last three months. As of Monday, AMZN is up 20% in the past 90 days, more than the Dow Jones Industrial Average by more than 12%.

Although the stock is down 3.7% from its 52-week high of $215.90 it reached in November, AMZN still sits north of $200. Over the past year, AMZN has risen by 42.1%, far outpacing the Dow’s 26.8% gain in that same period. Most of the company’s profits come from its North American region, contributing 63% to its revenue.

There are few companies as dominant as Amazon. The e-commerce firm has become the leader in the space and has continued to solidify its place amid a myriad of industries. Its ongoing upward trajectory could signal that diversification is driving it to unprecedented highs in the coming year.

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Amazon’s $8 billion acquisition of AI firm Anthropic has bolstered its position as a leader in AI-driven cloud computing. Additionally, with initiatives like Echo’s digital advertising business and the launch of Amazon Haul, AMZN is solidifying its market dominance compared to the rest of the Dow.

For Amazon, its recent momentum has many believing it is situated firmly as a buy-now stock. For the 2024 fiscal year, 15 analysts had revised earnings estimates higher over the last 60 days, Yahoo reports. The data shows that the stock is continuing to display an upward trajectory. With AI driving demand for Amazon’s cloud infrastructure services, AWS looks to contribute a larger share of its overall revenue. In turn, Amazon’s stock profit margins should continue to rise over the long term.