"Amazon ( NASDAQ:AMZN) has been a long-term winner, but it didn't give investors much to cheer about in 2025. The e-commerce leader's shares only inched up by roughly 6% in 2025. Its 5-year return of 47% hasn't even kept up with the S&P 500. However, after a few years of lagging the broader market, it may be time for Amazon stock to shine. These are some of the catalysts that can turn Amazon into a superstar stock next year."
"Even though Amazon's stock price didn't move much this year, its business continues to thrive in multiple industries. Overall revenue increased by 13% year-over-year in Q3, with double-digit growth rates for online stores, third-party seller services, advertising services, subscriptions, and Amazon Web Services. Amazon's ability to achieve high growth rates in multiple industries while expanding profit margins makes it a standout stock, especially with its lackluster performance this year."
"Amazon Web Services revenue growth has been accelerating due to artificial intelligence. AI tools need cloud platforms to work effectively, and Amazon is one of the leading cloud providers. Online ad sales should also continue to increase as Amazon continues to gain market share in the e-commerce industry. Amazon customers buy products on the site and then click a few product ads along the way. The setup increases the average lifetime value of each customer."
Amazon's stock showed minimal movement in 2025 despite long-term strength, rising roughly 6% and delivering a five-year return of 47% that lagged the S&P 500. Core business performance remained strong, with overall revenue up 13% year-over-year in Q3 and double-digit growth across online stores, third-party seller services, advertising, subscriptions, and Amazon Web Services. North American sales rose 11% while international sales grew 14%, and net income increased 38% year-over-year. Amazon Web Services is accelerating due to artificial intelligence demand, and online advertising growth benefits from Amazon's e-commerce ad placements that boost customer lifetime value.
Read at 24/7 Wall St.
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