Amazon (AMZN) stock has underperformed the broader markets in 2025, up only 4.2% year-to-date compared to the S&P 500’s 9.8% gain. However, three key growth drivers – AWS, advertising, and profitability improvements – could propel Amazon stock higher.

AWS, Amazon’s cloud division, generated $30.9 billion last quarter, with 17.5% YoY growth, positioning it for further expansion. Businesses’ increasing adoption of generative AI and cloud workloads boost AWS’s momentum, while Amazon’s vast transportation network enhances operational efficiencies and delivery speed.

Amazon’s advertising segment is a powerful growth catalyst, with ad revenue reaching $15.7 billion in Q2, a 22% YoY increase. Partnerships with Roku and Disney amplify Amazon’s reach, attracting advertisers. Improving profitability, including operating income growth in North America and internationally, further supports Amazon’s growth potential.

Despite lagging in 2025, Amazon’s strong fundamentals, including cloud and advertising growth, operational efficiencies, and profitability improvements, make it a solid investment. Wall Street maintains a “Strong Buy” consensus on AMZN stock, forecasting a potential soar in the future.

Read more at Yahoo Finance: 3 Catalysts That Could Send Amazon Stock Soaring Soon