While Amazon.com, Inc. (AMZN) topped analyst earnings estimates for the second quarter, its cloud unit AWS’ growth rates have dropped substantially over the past three quarters. Economic concerns have pushed enterprises to scrutinize their use of cloud infrastructure, resulting in AWS’ revenue growth slowdown. Also, the stock appears to be trading at an elevated valuation.
Nevertheless, with the growing internet penetration and rapid global digital transformation, the internet sector is well-positioned for robust growth and expansion. Therefore, investors looking to capitalize on the internet industry’s bright growth prospects could consider buying eBay Inc. (EBAY), Expedia Group, Inc. (EXPE), and Yelp Inc. (YELP) instead of AMZN.
