Amazon Stock Price Prediction: How It Could Reach $1,000+ by 2035

When looking at Amazon’s potential over the next decade, investors tend to fixate on its e-commerce business. However, the real wealth creation lies in two high-margin divisions that are fundamentally reshaping the company’s profitability: Amazon Web Services (AWS) and its rapidly expanding advertising platform. By 2035, these two business segments could position Amazon for extraordinary stock price appreciation, potentially making it one of the most rewarding long-term holdings for patient investors.

Why the Next Decade Differs From the Last

Amazon’s transformation over the past decade has been remarkable, but the next ten years will tell a different story. The e-commerce shift that once drove the company has largely saturated, yet Amazon found new engines of growth. The combination of AI adoption accelerating cloud computing demand and the explosive growth of digital advertising creates a unique opportunity. This convergence positions Amazon differently than it was even five years ago, making an Amazon stock price prediction for 2035 far more compelling than many investors realize.

The Two Business Engines Powering a Decade of Growth

AWS: The Cloud Powerhouse Capturing AI Demand

Amazon Web Services has emerged as the linchpin of the company’s profitability story. In recent quarters, AWS demonstrated an impressive 33% operating margin—a figure that dwarfs the 7.5% margin from its core e-commerce divisions. This isn’t coincidental; it reflects the fundamental economics of cloud infrastructure versus retail operations.

The catalyst for AWS’s continued expansion is the artificial intelligence arms race. Companies scrambling to build AI capabilities lack the capital to construct their own data centers from scratch. Instead, they’re renting computing capacity from established cloud providers like AWS. This dynamic ensures sustained demand for years to come.

The market opportunity validates this thesis. Grand View Research projects the global cloud computing market will expand from $752 billion in 2024 to $2.39 trillion by 2030—and momentum will likely accelerate beyond that. By 2035, cloud infrastructure could represent an even larger share of technology spending globally. For AWS, this translates to a multi-year runway of high-margin revenue growth, providing a stable foundation for Amazon’s overall profit expansion.

Advertising: The Unsung Profit Driver

While most observers focus on AWS, Amazon’s advertising business represents the other pillar of sustainable profitability. Amazon’s ad services division grew 23% year-over-year in recent quarters, making it the fastest-growing segment within the entire company. The profitability profile mirrors that of other advertising-focused platforms: Meta Platforms has consistently delivered operating margins between 30% and 45%, suggesting Amazon’s advertising business likely carries similar economics.

What makes this even more interesting is that advertising revenue sits buried within Amazon’s e-commerce reporting. Unlike AWS, which breaks out its financials separately, ad services get lumped into the core commerce segment. Yet this high-margin business is quietly driving the improvement in overall operating profits that investors have noticed over the past few years.

By 2035, as advertising matures within Amazon’s ecosystem and the company captures a larger share of digital ad spending, this division could contribute substantially more to the bottom line. The trajectory from 23% year-over-year growth to a much larger absolute profit base represents a multi-billion-dollar opportunity.

Modeling Amazon’s Path to 2035

Operating Profit Expansion: The Key Driver

The fundamental driver of stock price appreciation is operating profit growth. In recent periods, Amazon’s operating profits expanded at 31% year-over-year—an impressive figure but one that’s moderating from earlier peaks. For a conservative 2035 projection, assume operating profits grow at 20% annually through the end of the decade.

This 20% annual growth rate is reasonable given:

• AWS market share gains in a $2+ trillion cloud market
• Sustained advertising growth as the business matures
• Operating leverage from the combination of these two high-margin divisions

If Amazon achieves this growth trajectory, operating profits would reach approximately $420 billion by 2035—representing a 400%+ increase from current levels.

Valuation: The Second Component

Stock price isn’t determined by profits alone; valuation multiple matters. Today, Amazon trades at approximately 32 times operating profits—a fairly expensive valuation for a mature technology company. However, given the quality of growth and the margin expansion story, investors might reasonably expect Amazon to command a higher multiple by 2035.

Assuming a modest 28 times operating profits multiple (actually lower than today’s valuation, reflecting conservatism), a $420 billion operating profit base would yield a market capitalization of $11.76 trillion. With approximately 10.5 billion shares outstanding (using current figures), this translates to a stock price of approximately $1,120 per share.

This represents more than a 4-fold increase from current levels—extraordinary returns over a decade, but achievable if:

• AWS continues capturing market share in the cloud computing market
• Advertising reaches scale and sustains 20%+ growth
• Operating leverage improves profit margins across divisions
• The company maintains competitive advantages in these high-growth markets

The Bear Case: A More Conservative Scenario

Not every forecast needs to be perfectly optimistic. Consider a scenario where operating profit growth decelerates to 15% annually through 2035. This would yield approximately $260 billion in annual operating profits by 2030—still a doubling from current levels.

Even with a conservative 24 times operating profits multiple, this scenario produces an $6.24 trillion market cap, or roughly $595 per share. That’s a 2.4x return over nine years—still exceptional by historical market standards.

What This Means for Investors Today

An Amazon stock price prediction for 2035 that projects returns of 4x to 5x may seem aggressive, but it rests on defensible assumptions:

1. Cloud Computing Tailwinds: The $2+ trillion cloud market opportunity ensures AWS remains a dominant profit engine
2. AI as a Catalyst: Sustained AI investment requires sustained spending on cloud infrastructure
3. Advertising at Scale: A 23% growth rate in a high-margin business compounds to extraordinary levels over a decade
4. Operating Leverage: The combination of these two profit drivers should expand overall margins significantly

The risk, of course, is execution. Amazon must maintain competitive advantages, manage capital efficiently, and navigate regulatory challenges. However, the company’s track record suggests it’s positioned to deliver.

For investors considering whether to add Amazon to their portfolio, the long-term opportunity through 2035 appears compelling. The company’s combination of a durable base business, a high-growth cloud platform, and an increasingly profitable advertising network creates a powerful foundation for multi-year outperformance. While near-term volatility will certainly occur, the pathway to significant appreciation over the next decade appears well-established.