"Amazon(NASDAQ: AMZN) has been a reliable long-term performer, but the growth stock didn't have a spectacular 2025. The growth stock only gained 5% despite strong financial results throughout the year, and this mismatch makes Amazon look promising. It has made great strides in e-commerce, online advertising, cloud computing, and artificial intelligence (AI), four industries that are poised for long-term growth. That's enough to warrant a closer look, and when you dig into recent results, Amazon's stock seems undervalued at current levels."
"That part of the business was up by 24% year over year in Q3, reaching $17.7 billion. Although ad revenue is a little less than 10% of Amazon's total revenue, it is a high-margin business. Amazon is also competing with tech giantsMeta Platforms(NASDAQ: META) and Alphabet(NASDAQ: GOOG) (NASDAQ: GOOGL) with online ads. Meta Platforms earned $51.2 billion in Q3, while Alphabet brought in $65.9 billion from ads. Amazon's ad business is catching up to the two adtech leaders."
Amazon delivered only a 5% stock gain in 2025 despite strong financial results across the year. The company operates high-growth segments in e-commerce, online advertising, cloud computing (AWS), and artificial intelligence, each positioned for long-term expansion. Q3 advertising revenue rose 24% year over year to $17.7 billion and represents slightly less than 10% of total revenue while carrying high margins. Amazon competes with Meta Platforms and Alphabet in digital ads, where those peers reported $51.2 billion and $65.9 billion in Q3 ad revenue respectively. Ongoing AI commercialization and AWS leadership provide multiple growth tailwinds and support a potential undervaluation.
Read at The Globe and Mail
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