In 2025, Amazon’s stock returns were low, but the company’s high-growth business segments and focus on artificial intelligence present a buying opportunity. The online ads business is boosting margins and catching up to tech giants like Meta Platforms and Alphabet. Despite a modest 5% stock gain, Amazon’s strong financial results and growth potential make it promising.

Amazon’s margins have been boosted by diversifying beyond online retail, with online advertising revenue up by 24% year over year to $17.7 billion in Q3. While it’s a smaller part of Amazon’s overall revenue, online ads are a high-margin business that competes with Meta Platforms and Alphabet. Amazon’s ad business growth is outpacing its stock gains.

Amazon is leveraging artificial intelligence in multiple ways, including powering its cloud platform with Trainium2 chips. This has led to increased demand and a multibillion-dollar business segment. AI is also enhancing Amazon’s online marketplace with personalized recommendations and targeted ads. Despite strong Q3 results, Amazon’s stock price remains undervalued.

Consider investing in Amazon for its long-term growth potential, especially as the company continues to innovate with AI technology. The Motley Fool Stock Advisor team has identified the top 10 stocks to buy now, offering insights into potential market-beating returns. Don’t miss out on the opportunity to join an investing community focused on individual investors.

Read more at Nasdaq: Is This a Rare Buying Opportunity for Amazon Stock?