For those new to investing, a bull market is generally a sustained period of growth over several months or sometimes years. It officially starts when stock prices rise 20% from a recent low.

The chart below shows the S&P 500 hit its lowest point in October 2022 and has consistently risen since then, spurring a bull market.

The S&P 500 has risen about 55% since October 2022, driven by easing inflation and the emergence of artificial intelligence (AI). The index has made a solid recovery and likely isn't done yet. Earnings season kicked off this month, proving companies across tech are beginning to enjoy major gains from their investments in AI.

As a result, it's likely not too late to profit from the bull market. Amazon (NASDAQ: AMZN) is an attractive option, with its stock slightly beating the S&P 500 since the bull market's beginning, rising 57%. The company is home to a potent business with growth catalysts across tech.

So, get in while the bull market is still growing. Here are three reasons to buy Amazon stock like there's no tomorrow.

1. Enhancing its entire business with AI

Interest in AI has spiked since the start of last year, motivating countless tech companies to restructure their businesses to prioritize the industry. Cloud computing became a crucial growth area for AI, with many businesses turning to the top cloud platforms to integrate the technology into their workflows.

Amazon Web Services (AWS) has a leading 31% market share in cloud computing and has staunchly invested in AI. Since the start of 2023, Amazon has added a range of new AI tools to AWS and expanded the platform's reach by sinking billions into opening data centers at home and abroad. According to a Bloomberg report from March, Amazon plans to spend close to $150 billion over the next 15 years on data centers as it expects an explosion of demand for AI cloud services.

In addition to AWS, Amazon is enhancing other areas of its business with generative features. Earlier this year, the company launched its AI assistant, Rufus, designed to improve shoppers' experience on its e-commerce site. Meanwhile, AI helps the company better track shopping trends, recommend products, and deal with shipping/warehouse logistics.

2. A leg up in digital advertising

Amazon's success over the years is primarily thanks to consistent reinvestment in its business, which has seen it expand to multiple markets. In addition to online retail and AWS, the company has solid positions in grocery, video streaming, gaming, healthcare, and more. The company makes a point of keeping up with current tech trends, which recently led it to expand its role in the $740 billion digital advertising market.

The high costs of content production and running a demanding site for video streaming have seen many companies struggle to profit in the space. As a result, multiple entertainment firms have turned to ads to boost earnings. Netflix , Disney , and Comcast have all launched ad-supported tiers on their respective streaming platforms over the last year, partnering with advertising leaders like Alphabet and Microsoft .

Amazon also joined this year, introducing ads to its Prime Video streaming service. The move quickly paid off, diversifying its revenue streams and exposing it to another high-growth sector. Ad revenue increased by 20% in the second quarter of 2024, boosted by Prime Video ads.

Prime Video achieved more than 200 million subscribers this year, accounting for 22% of the streaming market (tied with Netflix in market share). Amazon's vast user base is an excellent tool for attracting advertisers, allowing it to continue expanding its digital ad earnings and potentially charge a premium for its services.

3. Amazon's stock is a bargain compared to its potential

Amazon's shares are up 33% year over year, outperforming the S&P 500's 28% rise. The company has rallied investors with impressive earnings gains, an expanding role in AI, and unexpected growth in digital advertising.

Meanwhile, the chart below suggests Amazon is a bargain compared to its growth prospects.

Amazon's price-to-earnings (P/E) ratio is high at 42. However, that figure is significantly lower than its 10-year average, a period when the company's stock price rose 958%. Meanwhile, Amazon's price-to-sales (P/S) ratio sits at an attractive three and is similarly below its 10-year average.

Alongside an exciting outlook in AI and a budding ad business, Amazon's stock is an excellent way to take advantage of the current bull market.

Before you buy stock in Amazon, consider this: