Stifel analyst Scott Devitt thinks the key to Amazon’s (NASDAQ:AMZN) growth are two of its businesses: e-commerce and the cloud. Those two alone, he feels, could cause Amazon stock to increase by at least 25%.

“Amazon is the leader in two large and rapidly growing markets (eCommerce and Cloud),” Devitt wrote in a September 27 note to his clients. “We expect continued market share gains from Amazon’s cloud business driven by increased adoption among larger enterprises and the public sector, wallet share gains from existing customers, and ongoing product innovation,” the analyst stated. 

Those two segments of Amazon’s business generated a combined $75 billion of revenue in the first half of 2018. With the holiday season quickly approaching, the company’s revenue will be much higher in the second half of the year than in the first half.

However, what’s scary is that these two businesses might not even be the key to Amazon stock reaching $10,000 per share, a level that, as I suggested early in 2018, could come sooner than investors think. But since AMZN stock still looks poised to hit $10,000 before the market believes it will,  longer- term investors should look to buy Amazon stock. 

Convenience in And Outside of the Home

While e-commerce and the cloud are essential pieces of the Amazon pie, I believe it is the company’s Prime membership offering that’s driving the Amazon bus.

“In Amazon’s case, it increases the number of Prime members and the amount those members spend annually by providing everything you need to run your home and life,” I wrote on March 2. “Over time, (its) revenues will exponentially climb, and with it, the price of Amazon stock. Buying Ring (a startup that developed smart doorbells with cameras) is all about capturing additional market share of the home,” I added.

At least that’s what I thought then.

However, a couple of recent moves and statements by the company indicate that Amazon’s key growth driver is not the home, but rather convenience.

Amazon Go Gets Going

InvestorPlace contributor Louis Navellier recently hit the nail on the head when he suggested that the cashierless convenience stores which Amazon is opening across the country will be an excellent way for it to leverage its existing businesses. Amazon is calling this initiative Amazon Go.

People today, especially those in their 20s and 30s, love grab-and-go, on-demand products and services. Amazon Go gives them that in spades while reducing the overhead costs of running a typical convenience store.

With Amazon planning to open 1,000 Amazon Go stores per year through 2021, traditional convenience stores have to be freaking out.

Once upon a time, convenience store owners probably thought they were safe from Amazon’s reach, but now it looks as though they’re right in Jeff Bezos’ crosshairs.

Young or old, consumers love convenience. I’m sure Amazon Go will provide Prime members with plenty of ways to benefit from convenience.

As Seen on TV

On September 27, AMZN opened Amazon 4-star in New York City, a shop that’s dedicated to selling items that have received four-star ratings on Amazon’s website.

Amazon 4-star reminds me of the old As Seen on TV retail shops that popped up in the 1990s. Except that Amazon is selling stuff that it knows its customers like.

“Amazon 4-star will be open to the public, but each product will be identified with a digital price tag, which displays average ratings, list price, and the Prime price,” InvestorPlace’s tech guru, Brad Moon recently wrote. “The general public pays the list price. Prime members scoop up the savings just as if they’d bought the product online,” explained Moon.

4-star could become the ultimate impulse buying experience for Amazon Prime members.

But don’t worry. If you’re not a Prime member and you happen to see something you want to buy, you can sign up for a 30-day Prime trial, so you can get the same low price.

Convenience and savings both in the home and outside the home.

It sounds like a winning combination to me.

The Bottom Line on Amazon Stock

About the only thing I’m worried about when it comes to AMZN stock is whether or not the company is taking on too many projects like Amazon Go and 4-star before they’re fully planned.

While I like both concepts, AMZN has a lot of work to do before they can become serious contributors to Amazon’s top line.

That said, Jeff Bezos rarely fails.

In my opinion, AMZN stock is the best of the FAANG stocks — today and into the future. Anyone who wants exposure to FAANG should definitely buy Amazon stock.

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.