Amazon (AMZN) shares remain in the spotlight as the e-commerce giant's annual Prime Day gets underway this week and The Trump administration over the weekend indicated that its most extreme 'reciprocal' tariffs would not go into effect this week.
Amazon's four-day Prime Day sales event is expected to drive a record $23.8 billion in U.S. e-commerce sales this week, according to a forecast released today by Adobe.
Amazon's scale in e-commerce and cloud enables strong operating leverage, driving profitability despite slowing topline growth. AI and robotics investments could ignite the next phase of profitability growth inflection for AMZN. Amazon's ability integrate AI across its operations highlight the potential long-term gains as these projects gain momentum.
TipRanks' analyst ranking service highlights three stocks, including Dell Technologies and Amazon, favored by Wall Street's top pros.
The S&P 500 (^GSPC 0.83%) is back to growth after declining for most of the year, and it's hitting new highs, recently up 5% year to date.
Amazon's current valuation underestimates its growth potential, especially as AI, robotics, and easing Chinese competition set up a strong multi-year margin runway. AWS and advertising are poised for sustained double-digit growth, driving margin expansion and elevating Amazon's consolidated profitability. Heavy capex for cloud and robotics is a temporary headwind; I expect a free cash flow inflection in 2026 to unlock a stock rerating.
Amazon.com Inc. (NASDAQ: AMZN) has been one of the stock market's biggest success stories ever.
Amazon's correction to ~$167 in April 2025 fits its historical pattern. A stable, defensive buy zone emerges whenever it nears a psychological support like $150–$200. Revenue and income rose in Q1 2025. AWS, ads and fulfillment innovations point to structural health. Near term headwinds from macro, tariffs. AI investments like Bedrock and Tranium promise future monetization and stronger margins across Amazon's key non-retail segments.
Amazon.com Inc (NASDAQ:AMZN)'s upcoming Prime Day sale event could drive more than $21 billion in sales, according to Bank of America analysts. This is driven by Amazon’s decision to extend the sale to 96 hours, double last year’s duration, starting July 8. This would represent an almost 60% increase compared to last year's Prime Day results and would account for more than 10% of Amazon's anticipated gross merchandise volume for the third quarter. Specifically, they project first-party sales will rise by 55% year over year to reach $11.5 billion, while third-party sales could increase by 67% to $10 billion. "By extending the duration of savings, it indicates that Amazon possesses enhanced retail logistics capabilities to provide promotions, and that inventory levels are not a limiting factor," the analysts wrote in a research note,” they wrote. The analysts added that a longer Prime Day could pressure profit margins if shoppers focus on low-margin products or if aggressive promotions cut into earnings.
Amazon has been quietly stacking the bricks of its robotics empire for years. Sentiment is only just building that "robotics will be the new AI," and Amazon is way ahead. Regulatory decisions in the medium and long term are likely to constrain Amazon's robotics returns, but these risks are not unique and are surmountable with patience and capital discipline. Amazon's valuation is slightly high right now, but it's still a strong investment, due to expanding earnings growth rates and a strong macroeconomic backdrop.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this AMZN commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters.
The prices of beer, outdoor folding chairs and grilling tools may be more expensive at Fourth of July barbeques this year, according to a congressional report. The total cost of a typical grocery trip for a cookout has increased by a 12.7% annualized rate since President Donald Trump's sweeping tariff announcement in April, according to the analysis.