Amazon (AMZN -2.02%) stock is heading lower in Monday's trading. The tech giant's share price was down 2.2% at 1:30 p.m.
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Despite a challenging 2025 for tech stocks, Amazon remains a 'buy' due to its strong long-term growth potential and robust financial performance. Amazon's North America and International segments showed significant revenue and profit growth, driven by productivity improvements and strong advertising revenue. AWS continues to be a major growth driver, with substantial revenue and profit increases attributed to AI and cloud migration trends.
Amazon (AMZN) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Finnish telecom giant Nokia on Monday said it had reached a settlement with Amazon, which it had sued over alleged patent infringements on video-related technologies.
For more than two years, nearly any stock tied to artificial intelligence (AI) was sizzling hot. That's no longer the case.
Amazon's stock dipped due to trade uncertainty, but AWS and digital advertising are driving substantial operating profit growth, making the stock undervalued. AWS, contributing significantly to operating profits with high margins, is expected to sustain growth, potentially tripling Amazon's operating profit by 2030. Digital advertising, with rapid growth and high margins, is poised to boost Amazon's profits, leveraging its vast customer data trove.
Capitalizing on the success of its short-video platform, TikTok Shop is quickly taking up market share in the social shopping arena.
Volatility has been the single most prominent theme investors have dealt with in 2025. At one point, the closely watched S&P 500 index fell 10% from its peak, reaching correction territory.
Amazon announced this week that Jennifer Salke is stepping down as the head of Amazon MGM Studios — a move that could indicate high-level dissatisfaction with the company's streaming strategy over the past few years.
The AI bubble appears to be unraveling, but fear is not the solution. Amazon has shown an ability to post both resilient top-line growth and aggressive margin expansion. Amazon has a strong net cash balance sheet.
Attention has been centered on Nvidia (NVDA -1.51%) stock when it comes to the booming market in artificial intelligence (AI). The computer chip maker is now generating more than $100 billion in annual revenue and is valued as one of the largest companies in the world by market capitalization.