Amazon's E-commerce Profitability Shift in 2025 Saves $4 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy AMZN?
Source: Fool
- E-commerce Profit Shift: By the end of 2025, Amazon is expected to operate 40 robot-equipped fulfillment centers, potentially saving up to $4 billion in operating costs, indicating a significant shift towards sustainable profitability in its e-commerce segment and enhancing its competitive edge in the market.
- AWS Capacity Expansion: Amazon Web Services (AWS) added 3.8 gigawatts of computing capacity over the past year and plans to double this by 2027, with projected capital expenditures exceeding $125 billion in 2025 to meet rising AI demand, ensuring long-term growth potential for the platform.
- Advertising Business Growth: In Q3 2025, Amazon's advertising revenue reached $17.7 billion, a 24% increase year-over-year, making it the fastest-growing segment, leveraging extensive user data to enhance ad targeting and capture greater market share.
- Diversified Profit Model: Amazon's synergistic development across e-commerce, AWS, and advertising not only boosts overall profitability but also provides funding for future investments, reducing reliance on any single business line and mitigating associated risks.
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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: 210.640
Low
175.00
Averages
280.01
High
325.00
Current: 210.640
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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