Amazon: A Top Choice for Long-Term Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy AMZN?
Source: Fool
- E-commerce and Cloud Leadership: Amazon's e-commerce segment is its largest revenue source, while cloud computing is its most profitable, with both businesses holding market leadership positions, showcasing the company's strong growth potential across multiple sectors.
- Rise of Digital Marketing: Amazon is rapidly becoming one of the world's largest digital marketing companies, and this high-margin business growth will provide long-term revenue drivers, further solidifying its market position.
- Technological Innovation Edge: Amazon's advancements in robotics, AI, and automation are often underestimated; these innovations, while not directly reflected in revenue, significantly enhance profitability and strengthen competitive advantages.
- Satellite Internet Potential: Amazon's satellite internet venture, Leo, competes with SpaceX's Starlink and, although still in early stages, offers substantial market potential and the possibility of bundling with Prime memberships for future growth opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 208.270
Low
175.00
Averages
280.01
High
325.00
Current: 208.270
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.
Amazon: The Leader in E-commerce and Cloud Computing
- Market Leadership: Amazon leads in both e-commerce and cloud computing, with e-commerce as its largest revenue source and cloud computing as its most profitable segment, showcasing the company's robust performance across multiple growth drivers.
- Digital Marketing Potential: Amazon is rapidly evolving into one of the world's largest digital marketing companies, and this high-margin business is expected to provide long-term growth momentum, further solidifying its market position.
- Investment in Technology Innovation: Amazon's investments in robotics, AI, and automation are often underestimated, yet these innovations significantly enhance profitability, indicating strong growth potential for the future.
- Satellite Internet Initiative: Amazon's Leo satellite internet project competes with SpaceX's Starlink, and while still in its early stages, its vast market potential and possible bundling with Prime memberships could create new growth avenues for the company.
See More
Amazon: A Top Choice for Long-Term Investment
- E-commerce and Cloud Leadership: Amazon's e-commerce segment is its largest revenue source, while cloud computing is its most profitable, with both businesses holding market leadership positions, showcasing the company's strong growth potential across multiple sectors.
- Rise of Digital Marketing: Amazon is rapidly becoming one of the world's largest digital marketing companies, and this high-margin business growth will provide long-term revenue drivers, further solidifying its market position.
- Technological Innovation Edge: Amazon's advancements in robotics, AI, and automation are often underestimated; these innovations, while not directly reflected in revenue, significantly enhance profitability and strengthen competitive advantages.
- Satellite Internet Potential: Amazon's satellite internet venture, Leo, competes with SpaceX's Starlink and, although still in early stages, offers substantial market potential and the possibility of bundling with Prime memberships for future growth opportunities.
See More
Oracle Cuts Thousands of Jobs to Support AI Infrastructure Development
- Layoff Announcement: Oracle has begun notifying its 162,000 employees about plans to cut thousands of jobs to free up cash flow for AI data center infrastructure development, which is expected to significantly reduce operating costs and enhance financial flexibility.
- Stock Price Reaction: Following the layoff news, Oracle's shares rose 2.6% in early trading, despite being down approximately 25% year-to-date, indicating a cautiously optimistic market response to the company's future strategy.
- Capital Expenditure Pressure: Oracle plans to raise up to $50 billion in 2025 through a mix of debt and equity to meet cloud service demand from clients, particularly from companies like Nvidia and Meta, reflecting strong market demand for AI infrastructure.
- Analyst Perspective: Barclays analysts noted that the layoffs will help free up cash flow and viewed this move as unsurprising, projecting that Oracle could triple its revenue over the next few years, despite lower employee productivity compared to competitors.
See More
Five Key Questions Facing Apple as It Enters Its Second Half-Century
- AI Strategy Challenge: While Apple dominates the U.S. smartphone market with over $100 billion in annual services revenue, its lack of significant investment in AI, compared to competitors spending hundreds of billions, could impact its future market share and innovation potential.
- Leadership Succession Issue: With CEO Tim Cook turning 65, potential successors like hardware chief John Ternus are being considered, but the next leadership will need to navigate the challenges posed by rapid technological changes, particularly in generative AI.
- China Market Dilemma: Apple's revenue from Greater China reached $64.4 billion in fiscal 2025, despite an 11% decline, the December quarter saw a 38% surge, indicating market potential, yet geopolitical tensions and trade disputes pose ongoing uncertainties.
- Brand Positioning and Service Expansion: As Apple introduces lower-priced products like the MacBook Neo and increases App Store advertising, the challenge remains to maintain its premium brand image amidst intensifying competition in the lower-end market, which could dilute its established identity.
See More
Stock Market Rebounds Amid OpenAI's Record Funding Round
- Market Rebound: The stock market experienced its best day since May after an unconfirmed report indicated that the Iranian president is open to ending the U.S.-Iran war, although the major indexes still logged significant losses in March, highlighting market volatility.
- Nike's Performance Fluctuations: Nike beat Wall Street's expectations in its earnings report, but concerns over declining sales forecasts led to a more than 10% drop in its stock during after-hours trading, reflecting market apprehension regarding its performance in China and overall uncertainty.
- Voting Rights Regulation: President Trump signed an executive order limiting mail-in voting, which faced immediate backlash from voting rights advocates and could lead to legal challenges ahead of the upcoming midterm elections, potentially impacting voter access.
- OpenAI Funding Milestone: OpenAI announced a record-breaking funding round, raising $122 billion in committed capital, enhancing its IPO potential, despite not yet achieving profitability, indicating strong market interest in its future prospects.
See More
Apple's 50th Anniversary Faces Multiple Challenges
- Succession Issues: As CEO Tim Cook approaches 65, rumors of his retirement persist despite his denials, with John Ternus, who has been with Apple for nearly 15 years and oversees hardware engineering, seen as a potential successor, facing complex supply chain challenges ahead.
- AI Strategy Lagging: While Apple dominates the U.S. smartphone market with over $100 billion in annual services revenue, its investment in AI lags behind competitors pouring hundreds of billions into infrastructure, and the slow evolution of Siri may hinder its future market competitiveness.
- China Market Dilemma: Apple's revenue from China reached $64.4 billion in fiscal 2025, down 11% from two years prior, although recent quarterly sales surged 38%, the ongoing U.S.-China trade tensions pose risks of tariffs and supply chain disruptions, leaving long-term growth prospects uncertain.
- Brand Positioning Challenges: Apple faces pressure to maintain its premium brand image as it introduces lower-priced products to attract more users, with analysts warning that failure to manage brand perception could dilute its brand value significantly.
See More
Amazon: The Leader in E-commerce and Cloud Computing
- Market Leadership: Amazon leads in both e-commerce and cloud computing, with e-commerce as its largest revenue source and cloud computing as its most profitable segment, showcasing the company's robust performance across multiple growth drivers.
- Digital Marketing Potential: Amazon is rapidly evolving into one of the world's largest digital marketing companies, and this high-margin business is expected to provide long-term growth momentum, further solidifying its market position.
- Investment in Technology Innovation: Amazon's investments in robotics, AI, and automation are often underestimated, yet these innovations significantly enhance profitability, indicating strong growth potential for the future.
- Satellite Internet Initiative: Amazon's Leo satellite internet project competes with SpaceX's Starlink, and while still in its early stages, its vast market potential and possible bundling with Prime memberships could create new growth avenues for the company.
See More
Amazon: A Top Choice for Long-Term Investment
- E-commerce and Cloud Leadership: Amazon's e-commerce segment is its largest revenue source, while cloud computing is its most profitable, with both businesses holding market leadership positions, showcasing the company's strong growth potential across multiple sectors.
- Rise of Digital Marketing: Amazon is rapidly becoming one of the world's largest digital marketing companies, and this high-margin business growth will provide long-term revenue drivers, further solidifying its market position.
- Technological Innovation Edge: Amazon's advancements in robotics, AI, and automation are often underestimated; these innovations, while not directly reflected in revenue, significantly enhance profitability and strengthen competitive advantages.
- Satellite Internet Potential: Amazon's satellite internet venture, Leo, competes with SpaceX's Starlink and, although still in early stages, offers substantial market potential and the possibility of bundling with Prime memberships for future growth opportunities.
See More
Oracle Cuts Thousands of Jobs to Support AI Infrastructure Development
- Layoff Announcement: Oracle has begun notifying its 162,000 employees about plans to cut thousands of jobs to free up cash flow for AI data center infrastructure development, which is expected to significantly reduce operating costs and enhance financial flexibility.
- Stock Price Reaction: Following the layoff news, Oracle's shares rose 2.6% in early trading, despite being down approximately 25% year-to-date, indicating a cautiously optimistic market response to the company's future strategy.
- Capital Expenditure Pressure: Oracle plans to raise up to $50 billion in 2025 through a mix of debt and equity to meet cloud service demand from clients, particularly from companies like Nvidia and Meta, reflecting strong market demand for AI infrastructure.
- Analyst Perspective: Barclays analysts noted that the layoffs will help free up cash flow and viewed this move as unsurprising, projecting that Oracle could triple its revenue over the next few years, despite lower employee productivity compared to competitors.
See More
Five Key Questions Facing Apple as It Enters Its Second Half-Century
- AI Strategy Challenge: While Apple dominates the U.S. smartphone market with over $100 billion in annual services revenue, its lack of significant investment in AI, compared to competitors spending hundreds of billions, could impact its future market share and innovation potential.
- Leadership Succession Issue: With CEO Tim Cook turning 65, potential successors like hardware chief John Ternus are being considered, but the next leadership will need to navigate the challenges posed by rapid technological changes, particularly in generative AI.
- China Market Dilemma: Apple's revenue from Greater China reached $64.4 billion in fiscal 2025, despite an 11% decline, the December quarter saw a 38% surge, indicating market potential, yet geopolitical tensions and trade disputes pose ongoing uncertainties.
- Brand Positioning and Service Expansion: As Apple introduces lower-priced products like the MacBook Neo and increases App Store advertising, the challenge remains to maintain its premium brand image amidst intensifying competition in the lower-end market, which could dilute its established identity.
See More
Stock Market Rebounds Amid OpenAI's Record Funding Round
- Market Rebound: The stock market experienced its best day since May after an unconfirmed report indicated that the Iranian president is open to ending the U.S.-Iran war, although the major indexes still logged significant losses in March, highlighting market volatility.
- Nike's Performance Fluctuations: Nike beat Wall Street's expectations in its earnings report, but concerns over declining sales forecasts led to a more than 10% drop in its stock during after-hours trading, reflecting market apprehension regarding its performance in China and overall uncertainty.
- Voting Rights Regulation: President Trump signed an executive order limiting mail-in voting, which faced immediate backlash from voting rights advocates and could lead to legal challenges ahead of the upcoming midterm elections, potentially impacting voter access.
- OpenAI Funding Milestone: OpenAI announced a record-breaking funding round, raising $122 billion in committed capital, enhancing its IPO potential, despite not yet achieving profitability, indicating strong market interest in its future prospects.
See More
Apple's 50th Anniversary Faces Multiple Challenges
- Succession Issues: As CEO Tim Cook approaches 65, rumors of his retirement persist despite his denials, with John Ternus, who has been with Apple for nearly 15 years and oversees hardware engineering, seen as a potential successor, facing complex supply chain challenges ahead.
- AI Strategy Lagging: While Apple dominates the U.S. smartphone market with over $100 billion in annual services revenue, its investment in AI lags behind competitors pouring hundreds of billions into infrastructure, and the slow evolution of Siri may hinder its future market competitiveness.
- China Market Dilemma: Apple's revenue from China reached $64.4 billion in fiscal 2025, down 11% from two years prior, although recent quarterly sales surged 38%, the ongoing U.S.-China trade tensions pose risks of tariffs and supply chain disruptions, leaving long-term growth prospects uncertain.
- Brand Positioning Challenges: Apple faces pressure to maintain its premium brand image as it introduces lower-priced products to attract more users, with analysts warning that failure to manage brand perception could dilute its brand value significantly.
See More
