Amazon was outstripping its Magnificent Seven peers such as Microsoft, Alphabet and Meta Platforms as the market welcomed news of a U.S.-China truce on tariffs.
Amazon stock outperformed the S&P 500 since my January "Buy" call, rising 24.68% versus 16.5%, with recent dips offering an attractive entry point due to strong fundamentals and reduced valuation. Q1 results validated Amazon's business expansion, with sales up 8.62% YoY, EBIT up 20%, and non-GAAP EPS surging 62%, beating consensus by 16.7%, driven by AWS and cost control. Amazon Ads now contributes nearly 9% of revenue, growing 19% YoY, while AWS's 17% YoY growth and heavy AI infrastructure investment signal robust future monetization and cloud dominance.
Amazon (AMZN 0.55%) is one of the least understood big tech companies. Everyone is familiar with its e-commerce platform and most probably use it weekly.
The online giant bought a mysterious chip startup 10 years ago. It now looks like one of the smartest deals in tech history.
The S&P 500 has rebounded swiftly from April's tariff-induced bear market, with Amazon stock showing resilience and consolidation above April lows. Amazon Web Services (AWS) remains a key profitability driver, helping to mitigate the headwinds linked to the trade turmoil. AMZN continues to trade at an attractive level, closer to the lows it fell to in late 2023.
Amazon.com Inc. (NASDAQ: AMZN) has been one of the stock market's biggest success stories ever.
Amazon's 1Q25 results show improved operating margins Y/Y, with North America at 6.3% and international at 3%. Valuation concerns include increased capex and slowing non-AWS growth, but potential operating margins of 8% for non-AWS segments suggest strong future earnings. With a market cap below the valuation range, Amazon stock is a buy for long-term investors holding for at least three years.
AMZN posts strong Q1 results, but issues mixed Q2 outlook. With premium valuation and tariff concerns, you can hold or wait for pullbacks if looking to buy.
Amazon's Q1 2025 earnings report showed mixed results, with revenue and profit exceeding expectations but a significant 48% year-over-year decline in free cash flow. Analysts project Amazon's EPS to grow at a 14.3% CAGR through FY 2030. But such a projection faces uncertainties, such as tariff rate changes, AWS growth deacceleration, etc.
AMZN remains cheap near 10Y P/E lows, as the worst of the tariff war headwinds are likely priced in through the management's softer FQ2'25 guidance. We believe that the company remains well positioned to weather the near-term uncertainties, thanks to its growing AWS/ Prime subscription/ advertising opportunities. These reasons are also why we believe that AMZN's intensified capex has been directly top/ bottom-line accretive, as observed in the leading cloud market share and growing multi-year RPOs.
Shares of Amazon.com Inc. (NASDAQ: AMZN) popped 1.47% during a.m.
Amazon crushed Q1 2025 earnings, with significant growth in Cloud and e-Commerce, confirming its strong operating income momentum. Amazon Web Services' rapid growth is pivotal, contributing 19% of total Q1 revenue and 63% of operating income, highlighting its importance. The firm submitted a cautious guidance for Q2 2025 which investors didn't especially like. However, Amazon is still expected to have the fastest growth in the big tech group.