From NASDAQ.: 2025-02-12 18:50:00

Amazon (NASDAQ: AMZN) exceeded expectations in Q4 with revenues up 10.5% to $187.8 billion. Earnings per share grew 86% to $1.86, beating estimates. However, the market reacted negatively to weaker revenue guidance for Q1. Amazon’s AI strategy, with $100 billion investments, positions it for growth despite short-term challenges.

AWS, Amazon’s cloud computing arm, saw revenues up 19% to $28.8 billion in Q4. AWS’s AI offerings are driving enterprise demand and operational efficiency. While hardware constraints may impact short-term growth, AWS’s long-term prospects are strong with new services and a 31% market share.

Amazon’s diversified business model, AI initiatives, and strategic positioning across high-growth areas support its premium valuation. Analysts predict 9.58% revenue and 29.65% earnings growth in 2025. With AWS’s strength and expanding advertising and e-commerce profitability, Amazon remains a compelling buy.

Consider investing in Amazon for long-term growth opportunities, supported by AI investments and strong fundamentals in AWS. The Motley Fool’s Stock Advisor service provides insights on top stocks for potential high returns. Past picks like Nvidia have shown significant growth over time, making it worth exploring other potential winners.



Read more at NASDAQ.: This Tech Giant Could Skyrocket on Its $100 Billion AI Bet in 2025