From Nasdaq: 2025-06-03 04:00:00

Amazon’s cloud computing arm, AWS, is crucial to the company’s profits, generating 58% of operating profits despite only accounting for 17% of sales. However, AWS is losing market share, falling to 29% in Q1 2025. Competitors like Google and Microsoft are gaining ground, signaling potential profit margin challenges ahead.

Investors may want to keep an eye on Amazon’s cloud business, as a slowdown in growth could lead to price wars and decreased profit margins. While AWS is still profitable for now, the competitive landscape is shifting, with smaller players gaining traction. Amazon’s stock price reflects expectations of continued AWS success, but any setbacks could impact its valuation.

For those considering investing in Amazon, it’s worth noting that the Motley Fool’s Stock Advisor team has identified 10 other stocks with strong growth potential. These picks have historically outperformed the market, offering substantial returns over time. While Amazon remains a solid investment option, diversifying into other high-growth stocks could be beneficial for long-term gains.



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