"Amazon's online marketplace simplified commerce, allowing people to purchase almost anything with a single click. However, the tech giant has made several strategic acquisitions to tap into more industries. Amazon Web Services was one of the company's best ideas due to its high margins, steady growth, and perfect positioning for the AI boom. The AWS cloud platform is the digital bedrock of many businesses, and its AI features make it an even bigger draw."
"Amazon ( NASDAQ:AMZN) didn't have the best 2025. Barring an end-of-year miracle, AMZN stock has underperformed the S&P 500 and has even trailed some corporate bonds with a low 4% return. It's been a disappointing year for long-term investors, but Amazon has a long history of producing tremendous returns. Lackluster returns in 2025 may have set the stage for a big rally in 2026."
Amazon underperformed in 2025, with AMZN stock trailing the S&P 500 and yielding low returns that disappointed long-term investors. Amazon Web Services delivers high margins, steady growth, and strategic positioning for AI, allowing businesses to create AI agents and enabling Amazon to use AI agents to boost productivity and cut support and development costs. Trainium2 AI chips generate billions annually, and a deal with Anthropic supplied nearly 500,000 Trainium2 chips in exchange for a stake. Amazon's ad revenue rose 24% year-over-year to $17.7 billion in Q3, supporting higher overall margins beyond retail.
Read at 24/7 Wall St.
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