Should You Forget Sirius XM Holdings? This stock has created many more millionaires.

Satellite radio giant Sirius XM Holdings (NASDAQ: SIRI) was once a millionaire maker. Shares soared during the dot-com boom, and many Sirius XM investors expected the good times to continue for a long time.

But Sirius XM’s stock price fell when the Internet bubble burst, and it hasn’t looked like a millionaire maker in a long time. Today, Sirius XM offers a generous dividend yield and some hope for a turnaround, and Master investor Warren Buffett buys the shares stock in 2024. So this stock still has some appeal, but I’m having a hard time getting excited about Sirius XM’s focus on the clunky satellite radio service. Now that high-speed wireless Internet connections are easily available almost everywhere, why not re-engineer the business around online streaming?

I respect Buffett’s Sirius XM strategy and hope it will be successful for investors who follow his lead. However, I prefer to watch the company’s turnaround efforts from the sidelines.

There are even more dot-com era winners on the market today. Amazon.com (NASDAQ: AMZN) not only survived the burst of the bubble, but thrived because it essentially created two new industries out of whole cloth. Let’s take a closer look at this e-commerce and cloud computing giant.

How Amazon shapes and creates industries with its flexible business model

With a market capitalization of $2.1 trillion and a seat in the “Magnificent Seven” table.Amazon is a real business giant.

The global e-commerce network posted net sales of $131 billion in the third quarter, up from $120 billion in last year’s report. Cloud computing platform Amazon Web Services (AWS) delivered $10.4 billion in operating profit. Annual revenue has skyrocketed forever, and Amazon’s free cash flows are back to a cool $43 billion per year after a brief dip.

AMZN Earnings (TTM) data Ygraphs

This is not a turnaround story. Amazon’s management has a knack for leading new business ideas, resulting in strong financial results. The company built a global computing service of which Google is the parent company Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in many ways ashamed, and the Prime shipping service makes FedEx (NYSE:FDX) look outdated. Same day delivery, anyone?

Consider Amazon’s unique mix of growth potential and competitively priced stock

Looking ahead, Amazon is expanding its international e-commerce operations as it jockeys for a position in the artificial intelligence (AI) boom. This multi-billion dollar company still acts like a hungry little upstart. Yet the stock is modestly priced today: 3.4 times sales and 43 times earnings.

If you’re looking for an affordable AI stock and a representative of Magnificent Seven, Amazon could be a perfect fit for you. It is also a global leader in online retail operations and cloud computing services. The Prime Video service is an award-winning business with ambitious global growth goals. And you simply won’t find another company that can fill all these promising positions at once.

Amazon is a smart investment choice for all seasons

Amazon made many early investors rich and continues to offer promising long-term growth prospects today. And if you’re only interested in Sirius XM because Warren Buffett has a $2.8 billion investment in it, Amazon isn’t far behind with a $2.0 billion stake in Buffett.

All told, Amazon stock offers a balanced mix of growth and value qualities. I’d call it “the best of both worlds,” but Amazon straddles the boundaries of so many industries and business ideas that “both” is a serious understatement. Let’s just say it’s hard to go wrong with an Amazon investment, even if you start with a trillion-dollar valuation.

Don’t miss this second chance at a potentially lucrative opportunity

Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.

On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: If you had invested $1,000 when we doubled in 2009, you would have $378,269!*

• Apple: If you had invested $1,000 when we doubled in 2008, you would have $43,369!*

• Netflix: If you had invested $1,000 when we doubled in 2004, you would have $476,653!*

We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.

See 3 “Double Down” Stocks »

*Stock Advisor returns November 18, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet and Amazon. The Motley Fool holds positions in and recommends Alphabet, Amazon and FedEx. The Motley Fool has one disclosure policy.