Amazon Faces Tough Competition in Subscription Services Space

Amazon’s subscription services, including Prime, continue to drive customer engagement and loyalty, with revenues of $11.7 billion in Q1. Prime Day 2025, set for July 8-11, aims to boost engagement and spending. However, Amazon faces stiff competition from Walmart+ and Apple Services, challenging its subscription suite.

AMZN shares have gained 0.8% YTD, trading at a forward 12-month Price/Sales ratio of 3.25X. Q2 2025 earnings estimate is $1.32 per share. Amazon carries a Zacks Rank #3. Analysts predict 7.32% year-over-year growth, but competition from Walmart+ and Apple Services may impact its performance.

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