From Nasdaq: 2025-05-10 05:35:00

Amazon (NASDAQ: AMZN) is often misunderstood, with its e-commerce business not being the main profit driver. China tariffs won’t heavily impact Amazon, as other segments like AWS generate the majority of profits.

AWS accounted for 63% of Amazon’s operating profits in Q1, with a 40% operating margin. This division is expected to continue strong growth due to the demand for cloud computing in AI infrastructure.

Advertising is Amazon’s fastest-growing segment, with an estimated 18% revenue growth in Q1. With a potential 30% operating margin, ad services and AWS combined made 86% of Amazon’s operating profits in Q1.

Investors can expect Amazon’s stock to continue performing well, with AWS and advertising driving profits. Ad services may face challenges during an economic downturn, but the division showed strong growth in Q1.

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Key figures in big tech companies like Alphabet and Meta Platforms provide insights into Amazon’s advertising division’s potential operating margins. With strong growth in Q1, Amazon’s ad services and AWS are crucial for driving profits.

Overall, Amazon’s stock is expected to perform well, driven by its strong segments like AWS and advertising. Consider investing in promising stocks and stay updated on market trends for potential gains.



Read more at Nasdaq: 2 No-Brainer Reasons Why Amazon Is a Must-Own Stock