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Amazon (AMZN) is the world's largest online retailer and a tech giant powering e-commerce, cloud computing via AWS, streaming entertainment, and digital devices like Kindle and Echo. It offers everything from books and groceries to electronics, with fast Prime delivery, Alexa voice tech, and AI innovations driving customer loyalty.
Founded in 1994 by Jeff Bezos, the company is headquartered in Seattle, Washington, and operates in over 20 countries today with over 300 million Prime members.
Amazon Stock Lags
Amazon stock has faced recent headwinds, dipping 3.38% over the past five days amid broader market pressures. It edged up 3.66% in the last month but slipped 5.83% over three months and remains 1.72% year-to-date (YTD). Longer-term strength shines with 10.93% gains in six months and 45% above its 52-week low.
Versus the S&P 500 Consumer Discretionary index ($SRCD), Amazon underperformed short-term, where the index reported flat against Amazon’s negative returns and continues to lag with a negative 3% return in 52-week against the index's 1% gain.
Amazon Posts Strong Results
Amazon announced solid third-quarter 2025 results on Oct. 30, 2025. Revenue grew 12% year-over-year (YOY) to $180.2 billion, topping analyst estimates of $177.75 billion by 1.4%. EPS reached $1.95, beating forecasts of $1.56 by 25%, boosted by strong sales across segments.
Financials reflected efficiency gains amid investments as operating income was $17.4 billion (down due to $4.3 billion in special charges like a $2.5 billion FTC settlement and $1.8 billion severance), but adjusted, it would have hit $21.7 billion. AWS revenue rose 20.2% to $33 billion (annual run rate $132 billion), and advertising jumped 22% to $17.7 billion. Trailing 12-month free cash flow stood at $14.8 billion, and cash CapEx was $34.2 billion in Q3.
For Q4, Amazon guided net sales to $206–$213 billion (10–13% YOY growth) and operating income to $21–$26 billion. Full-year 2025 cash CapEx is set at $125 billion, expected to rise in 2026 on AI and infrastructure bets.
Additionally, Amazon is scheduled to release its fourth-quarter 2025 results tomorrow, Feb. 5.
Amazon Rolls Out Alexa+
Amazon's upgraded Alexa+ is now free for all U.S. users, nearly a year after launching in March 2025 as an invite-only preview. Prime members get unlimited access at no extra cost. Non-Prime users pay $19.99/month for full features or use a limited free version via Alexa.com or the app.
This smarter Alexa, powered by advanced AI like Amazon's Nova and Anthropic models, competes with ChatGPT, Alphabet Google's (GOOGL) Gemini, and Claude. It's more conversational, personalized, and capable of handling tasks hands-free with a fresh architecture built for the AI era.
Should You Buy AMZN?
Amazon’s recent struggles have created an opportunity for improvement, with analysts issuing a consensus “Strong Buy” rating and a mean price target of $297.94, reflecting an upside potential of roughly 29% from the current market rate.
The stock has been rated by 57 analysts, receiving 50 “Strong Buy” ratings, 5 “Moderate Buy” ratings, and 2 “Hold” ratings.
