Comparing Investment Prospects of Amazon and eBay
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Amazon Financial Performance: In fiscal year 2025, Amazon's revenue reached $716.9 billion, reflecting a 12% year-over-year growth, with a net income of $77.7 billion and a net margin of approximately 10.8%, indicating its ongoing expansion in high-margin segments and operational optimization.
- eBay Market Positioning: eBay achieved $11.1 billion in revenue for fiscal year 2025, an 8% increase year-over-year, with a net income of $2.0 billion and a net margin of about 18.3%, demonstrating its profitability and efficiency through a focus on unique goods in the marketplace.
- Competition and Risks: Amazon faces intense competition from tech giants like Microsoft, with regulatory risks from antitrust investigations potentially impacting its marketplace management, while eBay contends with local marketplace competition and AI-driven shopping platforms, increasing operational costs and traffic risks.
- Future Growth Potential: While eBay excels in the used goods market, Amazon's rapid expansion into AI infrastructure is notable, with Q1 2026 sales reaching $181.5 billion, a 17% year-over-year increase, and AWS growing at 28%, highlighting its significant future growth potential.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 274.000
Low
175.00
Averages
280.01
High
325.00
Current: 274.000
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Market Competition: With SpaceX's Starlink already far ahead in satellite deployments, any delay for Amazon will slow its progress in high-value markets, intensifying competitive pressures in the low-Earth orbit satellite sector.
- Limited Financial Impact: Analysts note that while the incident may not have immediate financial repercussions for Amazon, the increased schedule risk and launch diversification concerns could negatively affect market perceptions and stock performance.
- Increased Dependency: Amazon had counted on up to 24 New Glenn launches to support its satellite constellation rollout, and the explosion may force it to rely on other, generally more expensive launch service providers like ULA and Ariane, increasing operational costs.
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- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
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See More
Amazon Faces Market Pressure After Blue Origin Launchpad Explosion
- Launch Schedule Disruption: The explosion at Cape Canaveral severely damaged the launchpad, impacting Amazon's plan to deploy 48 low-Earth orbit satellites, which may delay its deployment timeline and affect its competitiveness in the global market.
- Increased Market Competition: With SpaceX's Starlink already far ahead in satellite deployments, any delay for Amazon will slow its progress in high-value markets, intensifying competitive pressures in the low-Earth orbit satellite sector.
- Limited Financial Impact: Analysts note that while the incident may not have immediate financial repercussions for Amazon, the increased schedule risk and launch diversification concerns could negatively affect market perceptions and stock performance.
- Increased Dependency: Amazon had counted on up to 24 New Glenn launches to support its satellite constellation rollout, and the explosion may force it to rely on other, generally more expensive launch service providers like ULA and Ariane, increasing operational costs.
See More
Is It Time to Reload Your Underinvested Portfolio?
- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
See More
Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
See More
AI IPO Trend Could Supercharge Bull Market
- AI Investment Surge: Over the past few years, investor interest in artificial intelligence (AI) has surged as it demonstrates potential as the next major transformational technology, driving stock prices of leading companies like Nvidia and Cerebras Systems higher.
- Cerebras IPO Success: Cerebras went public on May 14, raising $5.5 billion and achieving a 68% increase on its first trading day, reflecting strong market interest and confidence in emerging AI companies.
- SpaceX and OpenAI IPO Prospects: SpaceX's intended valuation of nearly $2 trillion could make it the largest IPO ever, while OpenAI and Anthropic are also preparing to go public, with valuations potentially exceeding $800 billion, further attracting investor attention to the AI sector.
- Market Expansion and Risks: While the IPOs of emerging AI companies provide more opportunities for investors, they come with higher risks; established firms like Nvidia and Amazon remain solid choices, and the new IPOs are expected to inspire investors to increase their investments in AI stocks, boosting overall market growth.
See More
AI Stock Surge Fuels Market Growth
- AI Investment Surge: Investors have increasingly flocked to AI stocks, leading to significant price increases for companies like Nvidia and Alphabet, highlighting AI's potential as a transformative technology that is expected to enhance these companies' profitability and market performance.
- Cerebras IPO Success: Cerebras Systems went public on May 14, raising $5.5 billion in the largest IPO of the year, with a 68% increase on its first trading day, marking the rise of young AI companies and potentially offering new opportunities for investors.
- Future IPO Prospects: Companies like OpenAI and Anthropic are preparing for IPOs, with valuations expected to exceed $800 billion, and OpenAI potentially reaching $1 trillion, providing investors with more AI investment options and further stimulating market activity.
- Market Expansion Impact: The IPO trend initiated by Cerebras could encourage more investors to focus on AI stocks; although emerging companies carry higher risks, this trend is likely to promote overall growth in the AI market, with projections indicating it could reach $2 trillion in the coming years.
See More
Apple's Potential in Agentic AI Market
- Market Potential Assessment: Analysts believe Apple is well-positioned in the agentic AI sector, with its robust ecosystem providing a competitive edge, potentially generating $15 billion to $30 billion in AI-related revenue by fiscal 2030, which, while modest relative to Apple's overall revenue, indicates significant growth potential.
- Product Innovation Capability: Apple typically adopts a cautious approach when launching new technologies, innovating on existing models to attract users, as evidenced by the success of the iPhone and AirPods, suggesting it could similarly lead in the AI space.
- User Base Advantage: With over 2 billion devices in circulation, Apple can rapidly deploy new AI features, enhancing user retention and leveraging data to boost network effects, thereby strengthening its market competitiveness.
- Long-term Investment Value: Despite facing tariffs and regulatory scrutiny, Apple's strong customer loyalty and expanding high-margin services segment position it as a solid long-term investment, especially as AI technology matures, with future profit potential looking promising.
See More
