"While most people think of Amazon as an e-commerce powerhouse (and it is), it has other segments that are driving most of the growth investors are excited about. One area that emerged in recent years is Amazon's ad segment. Because consumers come straight to Amazon's website to shop for goods, it is sitting on a goldmine of advertising data. Amazon has taken this gold mine and transformed itself into an advertising powerhouse."
"Amazon has underperformed most of its big tech peers throughout 2025, but that underperformance may be the very thing that makes it a great stock pick. With Amazon not seeing its stock rise by a massive amount, it could be primed for a rally heading into 2026, and its third quarter results may have kicked off that rally. I've got three reasons why Amazon is a fantastic stock pick right now,"
Amazon underperformed many big tech peers during 2025, leaving the stock relatively cheap and potentially positioned for a rally into 2026. The advertising segment grew revenue 24% year over year to $17.7 billion in Q3, benefiting from rich shopper data and offering higher margins than commerce. AWS posted 20% year-over-year revenue growth in Q3, an improvement from Q2, and is capturing demand tied to artificial intelligence workloads. Strong ad growth and improving cloud momentum together can enhance overall margins and earnings. These dynamics create a case for investors to consider buying shares at current valuations.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]