Amazon's focus on e-commerce, third-party services, and AWS cloud positions it well for 2025.

From NASDAQ: 2025-04-09 18:41:00

The recent market sell-off has impacted stocks like Amazon (NASDAQ: AMZN), down 20% since January. With implications for 2025, Amazon’s e-commerce is not the main revenue driver. Instead, third-party seller services, digital ads, and AWS cloud services lead the way in profit growth, positioning Amazon well for the future.

Generative AI demand has boosted Amazon’s operating margin to 37% in 2024. Despite a 10% revenue growth to $387 billion, operating income surged 86% to $69 billion, largely driven by AWS. Analysts forecast a 10% revenue growth in 2025, but a potential 15% profit growth slowdown could impact shares negatively.

Amazon’s success in third-party sales, ads, and AWS could prompt investors to reconsider its low valuation. With a discounted P/E ratio, Amazon’s adaptability, and successful businesses, now may be a good time to invest in the tech giant.

The Motley Fool Stock Advisor’s 10 best stocks list doesn’t include Amazon. Instead, it offers potential high returns with other picks. Stock Advisor, with its track record of outperforming the S&P 500, provides guidance and regular updates for investors seeking success in the market.



Read more at NASDAQ: Is Amazon Stock a Buy, Sell, or Hold in 2025?