Morning Bid: Buy in May? By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2025
0mins
Should l Buy AMZN?
Source: Investing.com
Market Overview: Global markets are reacting to potential U.S.-China trade talks, with Beijing evaluating an offer from Washington regarding tariffs, while Japan hints at leveraging its U.S. Treasury holdings in negotiations. The U.S. stock market is showing signs of recovery despite mixed economic indicators and disappointing earnings from major tech companies like Apple and Amazon.
Economic Indicators and Predictions: Upcoming employment reports are expected to influence market trends, as analysts speculate on the impact of macroeconomic uncertainties and the Federal Reserve's interest rate decisions. Meanwhile, the broader economic outlook remains cautious, with some strategists questioning traditional seasonal trading advice amid ongoing trade tensions.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
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.
Tech Stocks to Buy and Hold Long Term
- Amazon's Cloud Dominance: Amazon (NASDAQ: AMZN) has established itself as the world's largest cloud service provider through its AWS platform, which supports thousands of websites and applications; despite competition from Microsoft and Google Cloud, AWS continues to grow, underscoring its core position in the tech industry.
- Diversified Business Expansion: Beyond cloud computing, Amazon is expanding into advertising, streaming, and healthcare, ensuring that its profitable retail business funds its high-risk tech investments, thereby enhancing the company's long-term growth potential.
- Cybersecurity Market Outlook: CrowdStrike (NASDAQ: CRWD), a pioneer in AI cybersecurity solutions, leverages trillions of data points to strengthen its AI models, positioning itself for significant market share growth in an increasingly digital world, highlighting its leadership in the cybersecurity sector.
- Stock Volatility and Growth Potential: Although CrowdStrike's stock trades at 84.8 times projected earnings, significantly higher than Amazon's 27.6, it has surged approximately 540% since its IPO in June 2019, reflecting its strong long-term investment value.
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Amazon Pharmacy Expands Same-Day Prescription Delivery Nationwide
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- New Market Penetration: This expansion will include newly served states such as Idaho and Massachusetts, aiming to provide fast and reliable medication delivery to more customers, addressing the needs of patients in diverse regions.
- Enhanced Patient Experience: John Love, Vice President of Amazon Pharmacy, stated that by combining pharmacy expertise with logistics networks, they aim to remove critical barriers for patients in accessing medications, thereby accelerating the start of treatment and improving overall medication experiences.
- Standard for Digital Pharmacy: Through this expansion, Amazon Pharmacy sets a new standard, emphasizing that patients should not have to choose between speed, cost, and convenience, thereby promoting the widespread adoption of digital pharmacy services.
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Investment Potential of Amazon and CrowdStrike
- Amazon's Cloud Dominance: Amazon (AMZN) has established itself as the world's largest cloud platform through AWS, boasting a market cap of $2.2 trillion; despite competition from Microsoft and Google, AWS continues to grow robustly, supporting the company's expansion into advertising, streaming, and healthcare.
- Market Share and Growth: Although AWS has sacrificed some market share, the overall growth of the cloud industry allows it to achieve impressive growth, demonstrating Amazon's resilience and profitability in high-risk tech investments.
- CrowdStrike's Industry Position: CrowdStrike (CRWD), a pioneer in AI cybersecurity solutions, has a market cap of $105 billion and a gross margin of 74.1%, with 24% of its customers using at least eight of its security solutions, highlighting its leadership in the industry.
- Data Advantage and Long-term Investment: CrowdStrike has amassed trillions of data points, enhancing its AI model capabilities; despite its high stock price with a P/E ratio of 84.8, the stock has risen approximately 540% since its IPO in June 2019, indicating strong long-term investment potential.
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Ring Terminates Partnership with Flock Safety Amid Privacy Concerns
- Partnership Termination: Amazon's Ring has announced the termination of its partnership with police tech company Flock Safety, a decision made in response to privacy concerns raised after a controversial Super Bowl ad, indicating the company's sensitivity to external pressures.
- Privacy Controversy: Flock's automated license plate reader system has been criticized as a 'surveillance nightmare,' while Ring's 'Search Party' feature faced backlash from privacy advocates, highlighting public apprehension regarding tech companies' collaborations with law enforcement.
- Internal Pressure: Prior to Ring's decision, employees at Salesforce and Google had pressed their CEOs to reconsider ties with ICE and CBP, reflecting a growing concern within the tech industry regarding ethical responsibilities.
- Resource Assessment: Ring stated in its announcement that a comprehensive review revealed the integration with Flock would require significantly more time and resources than anticipated, leading to the cancellation of the planned partnership, which indicates a strategic reassessment within the company.
See More
Ring Ends Partnership with Flock Safety Amid Privacy Concerns
- Partnership Termination: Ring has announced the termination of its partnership with Flock Safety, citing that the planned integration would require significantly more time and resources than anticipated, reflecting the company's commitment to privacy concerns.
- Growing Public Pressure: This decision comes amid increasing scrutiny on tech companies regarding their collaborations with federal agencies, particularly after Salesforce and Google employees urged their companies to sever ties with ICE, highlighting a broader movement for corporate accountability.
- Ongoing Privacy Controversy: The partnership faced significant backlash, especially after Ring's Super Bowl ad promoting a 'Search Party' feature was criticized as a 'surveillance nightmare,' indicating heightened public sensitivity towards surveillance technologies.
- Inactive Collaboration: Despite the partnership announcement, Ring's spokesperson clarified that no videos were ever shared between the two services, indicating that the collaboration was never operational.
See More
Alphabet and Amazon: Top Stocks to Buy Now
- Google Search Engine Advantage: Alphabet (GOOGL) holds a dominant position as the primary search engine globally, leveraging AI to drive search growth, with its cloud computing revenue surging 48% last quarter, indicating strong market demand and profitability.
- Capital Expenditure Plans: Alphabet plans to invest between $175 billion and $185 billion in capital expenditures in 2023, particularly on its proprietary TPU chips, which provide a cost advantage in the AI sector, thereby enhancing its return on investment.
- Amazon E-commerce Growth: Amazon (AMZN) drives a 24% increase in operating income in its North American e-commerce business, with a 10% rise in sales, showcasing its dominant market position and operational efficiency through a robust logistics network.
- Cloud Computing Market Leadership: Amazon Web Services (AWS) sees a 24% revenue growth last quarter, marking an acceleration in its cloud computing sector, while committing to $200 billion in capital expenditures in 2023 to meet the rising demand for infrastructure and AI services.
See More
Tech Stocks to Buy and Hold Long Term
- Amazon's Cloud Dominance: Amazon (NASDAQ: AMZN) has established itself as the world's largest cloud service provider through its AWS platform, which supports thousands of websites and applications; despite competition from Microsoft and Google Cloud, AWS continues to grow, underscoring its core position in the tech industry.
- Diversified Business Expansion: Beyond cloud computing, Amazon is expanding into advertising, streaming, and healthcare, ensuring that its profitable retail business funds its high-risk tech investments, thereby enhancing the company's long-term growth potential.
- Cybersecurity Market Outlook: CrowdStrike (NASDAQ: CRWD), a pioneer in AI cybersecurity solutions, leverages trillions of data points to strengthen its AI models, positioning itself for significant market share growth in an increasingly digital world, highlighting its leadership in the cybersecurity sector.
- Stock Volatility and Growth Potential: Although CrowdStrike's stock trades at 84.8 times projected earnings, significantly higher than Amazon's 27.6, it has surged approximately 540% since its IPO in June 2019, reflecting its strong long-term investment value.
See More
Amazon Pharmacy Expands Same-Day Prescription Delivery Nationwide
- Service Expansion: Amazon Pharmacy plans to expand its same-day prescription delivery service to 4,500 cities and towns across the U.S. by the end of 2026, adding nearly 2,000 new communities, significantly enhancing the coverage and convenience of medication delivery.
- New Market Penetration: This expansion will include newly served states such as Idaho and Massachusetts, aiming to provide fast and reliable medication delivery to more customers, addressing the needs of patients in diverse regions.
- Enhanced Patient Experience: John Love, Vice President of Amazon Pharmacy, stated that by combining pharmacy expertise with logistics networks, they aim to remove critical barriers for patients in accessing medications, thereby accelerating the start of treatment and improving overall medication experiences.
- Standard for Digital Pharmacy: Through this expansion, Amazon Pharmacy sets a new standard, emphasizing that patients should not have to choose between speed, cost, and convenience, thereby promoting the widespread adoption of digital pharmacy services.
See More
Investment Potential of Amazon and CrowdStrike
- Amazon's Cloud Dominance: Amazon (AMZN) has established itself as the world's largest cloud platform through AWS, boasting a market cap of $2.2 trillion; despite competition from Microsoft and Google, AWS continues to grow robustly, supporting the company's expansion into advertising, streaming, and healthcare.
- Market Share and Growth: Although AWS has sacrificed some market share, the overall growth of the cloud industry allows it to achieve impressive growth, demonstrating Amazon's resilience and profitability in high-risk tech investments.
- CrowdStrike's Industry Position: CrowdStrike (CRWD), a pioneer in AI cybersecurity solutions, has a market cap of $105 billion and a gross margin of 74.1%, with 24% of its customers using at least eight of its security solutions, highlighting its leadership in the industry.
- Data Advantage and Long-term Investment: CrowdStrike has amassed trillions of data points, enhancing its AI model capabilities; despite its high stock price with a P/E ratio of 84.8, the stock has risen approximately 540% since its IPO in June 2019, indicating strong long-term investment potential.
See More
Ring Terminates Partnership with Flock Safety Amid Privacy Concerns
- Partnership Termination: Amazon's Ring has announced the termination of its partnership with police tech company Flock Safety, a decision made in response to privacy concerns raised after a controversial Super Bowl ad, indicating the company's sensitivity to external pressures.
- Privacy Controversy: Flock's automated license plate reader system has been criticized as a 'surveillance nightmare,' while Ring's 'Search Party' feature faced backlash from privacy advocates, highlighting public apprehension regarding tech companies' collaborations with law enforcement.
- Internal Pressure: Prior to Ring's decision, employees at Salesforce and Google had pressed their CEOs to reconsider ties with ICE and CBP, reflecting a growing concern within the tech industry regarding ethical responsibilities.
- Resource Assessment: Ring stated in its announcement that a comprehensive review revealed the integration with Flock would require significantly more time and resources than anticipated, leading to the cancellation of the planned partnership, which indicates a strategic reassessment within the company.
See More
Ring Ends Partnership with Flock Safety Amid Privacy Concerns
- Partnership Termination: Ring has announced the termination of its partnership with Flock Safety, citing that the planned integration would require significantly more time and resources than anticipated, reflecting the company's commitment to privacy concerns.
- Growing Public Pressure: This decision comes amid increasing scrutiny on tech companies regarding their collaborations with federal agencies, particularly after Salesforce and Google employees urged their companies to sever ties with ICE, highlighting a broader movement for corporate accountability.
- Ongoing Privacy Controversy: The partnership faced significant backlash, especially after Ring's Super Bowl ad promoting a 'Search Party' feature was criticized as a 'surveillance nightmare,' indicating heightened public sensitivity towards surveillance technologies.
- Inactive Collaboration: Despite the partnership announcement, Ring's spokesperson clarified that no videos were ever shared between the two services, indicating that the collaboration was never operational.
See More
Alphabet and Amazon: Top Stocks to Buy Now
- Google Search Engine Advantage: Alphabet (GOOGL) holds a dominant position as the primary search engine globally, leveraging AI to drive search growth, with its cloud computing revenue surging 48% last quarter, indicating strong market demand and profitability.
- Capital Expenditure Plans: Alphabet plans to invest between $175 billion and $185 billion in capital expenditures in 2023, particularly on its proprietary TPU chips, which provide a cost advantage in the AI sector, thereby enhancing its return on investment.
- Amazon E-commerce Growth: Amazon (AMZN) drives a 24% increase in operating income in its North American e-commerce business, with a 10% rise in sales, showcasing its dominant market position and operational efficiency through a robust logistics network.
- Cloud Computing Market Leadership: Amazon Web Services (AWS) sees a 24% revenue growth last quarter, marking an acceleration in its cloud computing sector, while committing to $200 billion in capital expenditures in 2023 to meet the rising demand for infrastructure and AI services.
See More
