"Compared to the S&P 500, Amazon shares have floundered in 2025. Investors are weighing the company's heavy infrastructure spending against its improving profitability in cloud, ads, and retail, trying to figure out if the company's aggressive investments will pay off or weigh on the business. Over the long term, I believe the former will be true. The company, which operates a global e-commerce marketplace, a leading cloud-computing platform"
"In Q2, for instance, AWS contributed more than half of Amazon's total operating income in the period despite representing less than one-fifth of sales. That mix of scale and profitability gives Amazon options. And options are important at a time when the company needs to fund new AI services and continue building fulfillment centers while remaining financially disciplined. Specifically, second-quarter AWS revenue rose 17.5% year over year to $30.9 billion."
Amazon underperformed the S&P 500 in 2025, prompting consideration of heavy infrastructure spending versus improving profitability across cloud, advertising, and retail. The company operates a global e-commerce marketplace, AWS cloud platform, and a fast-growing digital advertising business tied to e-commerce and media properties, providing exposure to the AI opportunity through established competitive advantages. AWS remains the primary profit engine: in Q2 it contributed more than half of Amazon's operating income while representing less than one-fifth of sales. Second-quarter AWS revenue rose 17.5% year over year to $30.9 billion, and the segment's operating income reached $10.2 billion, supporting broader company investments.
Read at The Motley Fool
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