📦 Amazon stock deep dive: Is the e-commerce titan still a buy in 2025?
- NexxtGen Markets
- 2 days ago
- 4 min read
Amazon (NASDAQ: AMZN), once known simply as an online bookstore, has grown into a global tech and logistics behemoth. With a market cap approaching $2 trillion, the company now commands dominance across e-commerce, cloud computing, digital advertising, and AI infrastructure. But with new competitors, regulatory scrutiny, and a shifting macroeconomic landscape, investors are asking: is Amazon still worth owning in 2025?
This deep dive takes a closer look at Amazon’s business segments, financial performance, growth outlook, and what traders and long-term investors should watch next.
💻 Business breakdown: not just boxes and books
Amazon’s revenue engine is now more diverse than ever. Here’s how the company makes money:
North America e-commerce: The core retail segment continues to post strong revenue, driven by Prime members and faster fulfilment through Amazon’s same-day delivery network.
Amazon Web Services (AWS): Its cloud computing arm is the most profitable division, providing infrastructure for startups, enterprises, and even governments.
International e-commerce: Growth has slowed in some geographies due to macro pressures and currency headwinds, but India, Latin America, and the Middle East remain strategic priorities.
Advertising: Amazon’s ad business now generates over $40 billion annually, making it a serious rival to Google and Meta.
Other Bets: This includes Amazon’s forays into healthcare (One Medical), grocery (Whole Foods), streaming (Prime Video), and generative AI.
🧾 Financials snapshot: better margins, growing cash flow
Amazon’s latest earnings surprised to the upside. The company posted a 13% year-on-year increase in revenue, while operating income soared nearly 200%, a testament to cost discipline and growing margins in AWS and advertising.
Metric (Q1 2025) | Result |
Revenue | $145.8 billion |
Operating Income | $15.3 billion |
AWS Revenue | $26.2 billion |
Free Cash Flow (TTM) | $24.1 billion |
Earnings Per Share (EPS) | $1.12 |
CEO Andy Jassy has been credited with shifting Amazon from a “growth-at-all-costs” model to a more disciplined operating approach, helping restore investor confidence.
🔭 What’s driving growth now?
AI investments: Amazon is building custom AI chips (Trainium & Inferentia) and partnering with major AI developers to expand AWS offerings. This supports long-term competitiveness in cloud and machine learning.
Ad revenue surge: Amazon's data-rich ecosystem is boosting its ad targeting capabilities. This high-margin stream could rival AWS in profitability within the decade.
Logistics moat: With over 300 million square feet of logistics space globally, Amazon is shortening delivery times and expanding B2B services through Amazon Shipping.
Prime ecosystem stickiness: 250 million+ Prime members globally fuel consistent recurring revenue and cross-sell potential across retail, video, and grocery.
🧠 Risks for traders and investors to watch
Regulation: Antitrust scrutiny is rising in the U.S. and EU. Any forced break-up or fines could impact Amazon’s integrated ecosystem.
Consumer fatigue: Post-pandemic e-commerce growth has normalised, and inflationary pressures could hit discretionary spending.
AWS competition: Microsoft Azure and Google Cloud are gaining market share. Pricing pressure or AI platform shifts could hurt AWS growth.
Execution risk: As Amazon expands into health, groceries, and hardware, some initiatives may dilute focus or fail to gain traction.
📊 Technical outlook: where is AMZN stock headed?
Amazon shares have rebounded strongly from their 2022 lows, now trading around $182 as of May 2025, up over 30% year-to-date.
Support: The $165–170 range is seen as key near-term support.
Resistance: A breakout above $185 could see AMZN test $200+ levels last seen during the 2021 peak.
Momentum: The Relative Strength Index (RSI) sits in neutral territory, and MACD indicators show signs of bullish continuation.
Long-term investors still favour Amazon for its cash generation and tech dominance, but short-term traders are eyeing the $185 resistance closely ahead of the next earnings report.
✅ Verdict: still a core holding?
Amazon remains one of the most influential companies in the world. Its dominant cloud infrastructure, growing ad business, and continued investment in logistics and AI make it well-positioned for the next decade.
While competition and macro pressures persist, its scale and innovation engine give it a durable edge. For long-term investors, Amazon may still be a buy—particularly on pullbacks. For short-term traders, there’s potential for upside momentum if the stock can clear technical resistance.
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