1 Reason to Be Very, Very Excited About Amazon Stock Right Now
Investors will be persuaded to buy shares as they trade 10% off their all-time high.
In the past decade, Amazon (AMZN 0.78%) shares have risen by 714% (as of Sept. 25). It’s hard not to be pleased with that kind of return, which points to a business that has clearly done extremely well in its various end markets. Prospective investors might also be happy with the fact that shares are down 10% from their peak, presenting an opportunity.
However, there’s more to the story. Here’s one reason to be very, very excited about Amazon stock right now.
Image source: Amazon.
Well positioned in the AI boom
Everyone sees Amazon as the e-commerce juggernaut. That’s certainly true. But in the past several years, the huge success of Amazon Web Services (AWS), its cloud computing unit, has gotten a lot of attention.
AWS gives Amazon a strong position in the artificial intelligence (AI) boom. Companies want to leverage the necessary tools and services to build their own AI apps, and AWS provides that.
CFO Brian Olsavsky said the company plans to spend about $60 billion in capital expenditures in the second half of this year. “AWS continues to be the primary driver as we invest to support demand for our AI services,” he pointed out on the Q2 2025 earnings call.
Financial implications
As AWS continues to register robust demand, Amazon should benefit financially. During the latest quarter (Q2 2025 ended June 30), AWS posted 17% year-over-year growth. And it’s an extremely profitable segment, with an average operating margin of 37% over the past four quarters. AWS has become a major growth and profit driver for the overall business.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.