Amazon (AMZN) is poised to be one of the standout stocks to watch among the Magnificent-7 tech stocks in 2025, according to analysts. With a solid foundation in both e-commerce and cloud services, Amazon is positioning itself for continued growth. Jason Brown from The Brown Report highlights two key drivers for AMZN’s potential success in the coming year: its cloud division, AWS, and its growing advertising revenue.
AWS has been a consistent revenue generator for Amazon, with its revenue increasing by 19% to $27.5 billion. Additionally, Amazon’s advertising services contributed around $14.3 billion, a 19% increase as well. Combined, AWS and advertising account for nearly $50 billion in revenue—nearly half of Amazon’s total North American sales. This diversified growth engine outside of its e-commerce platform bodes well for the stock’s long-term prospects.
Looking ahead to 2025, Amazon’s Q4 earnings report, set to be announced in February, will provide further insights into the company’s trajectory. The solid performance of AWS throughout 2024 helped drive earnings, and analysts are optimistic about continued growth. North America remains a crucial market for Amazon, with both its e-commerce and AWS businesses expanding steadily.
In addition to its core businesses, Amazon is making significant strides in artificial intelligence (AI). In December, AWS announced a $10 billion investment in expanding data centers in Ohio, a move that could enhance Amazon’s AI capabilities. As the competition for AI dominance intensifies, Amazon’s investments in this sector are expected to fuel its growth and elevate the company’s stock value.
Currently, AMZN stock is trading at $223.68, reflecting a 6% increase over the past 30 days. With a projected price target of $285 in the next year, this could represent a more than 27% jump. Should the stock reach this target, Amazon could join the exclusive $3 trillion market cap club, marking a significant milestone in its journey.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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