Amazon is facing challenges due to higher tariffs but may be offset by growth in AI adoption, cloud, and advertising businesses. Despite this, Amazon’s long history of growth and discount valuation are positive factors. The impact of tariffs on second-quarter sales and profits is uncertain due to the trade deal with China, but the company expanded Prime Day sale to boost sales. AWS remains a strong performer, with AI driving growth. Amazon’s advertising business is thriving and expanding, with a recent deal with Roku being a significant catalyst. Analysts are bullish on Amazon’s future, with a potential upside of 8-33%. Amazon stock is currently trading at a discount compared to historical averages, making it a potential bargain for investors. With a 95% increase over the past three years, outperforming the S&P 500, Amazon is seen as a buy by analysts. However, it’s worth noting that the Motley Fool Stock Advisor team did not include Amazon in their list of the 10 best stocks to buy now, which have historically produced significant returns for investors. As of July 7, 2025, the average return for Stock Advisor recommendations is 1,047%, significantly higher than the S&P 500’s 180%.

Read more at 1. “Apple announces new iPhone 13 lineup with improved cameras and faster chips.” – CNBC

2. “Unemployment rate drops to 5.2% as 235,000 jobs added in August.” – Wall Street Journal

3. “Tesla stock reaches all-time high after strong quarterly earnings report.” – Reuters

4. “Fed announces plans to start tapering bond purchases by end of year.” – CBS MarketWatch

5. “Amazon to hire 55,000 employees for upcoming holiday season.” – Barchart: Should You Buy Amazon Stock Before July 31?