Amazon.com, Inc. (NASDAQ:AMZN) has underperformed major tech stocks, down 3% due to tariff-related headwinds and a slowdown in their Cloud business, growing at 17.5% in Q2 compared to Microsoft Azure’s 26% and Google Cloud’s 32%. AWS is facing challenges amid the AI wave, preferring AI-first cloud platforms.

Mairs & Power Balanced Fund started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in Q2 2025, believing the company is well-positioned to capture market share in retail and grow its cloud business. Despite potential, other AI stocks may offer higher returns with limited downside risk.

Steve Weiss of Short Hills Capital Partners likes Amazon despite its lag in performance, attributing it to being focused on infrastructure (IaaS) while companies prefer AI-first cloud platforms. Wall Street is spooked by AWS’s relative slowdown and structural changes in the cloud market amid the AI wave.

Read more at Yahoo Finance: Analyst Explains Why He Likes Amazon.com (AMZN) Despite It Being a ‘Laggard’