Amazon AWS Maintains Cloud Leadership Amidst Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Cloud Growth: Amazon's AWS achieved a 24% year-over-year growth in 2025, adding $21.2 billion in revenue, although this was behind Google Cloud's 36% and Microsoft's Azure's 39%, indicating its sustained leadership in the cloud market despite competitive pressures.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures in 2025, primarily for AWS and AI workloads, which has raised skepticism among investors; however, this move underscores the company's commitment to maintaining its market leadership.
- Profitability Comparison: AWS's operating income reached $45.6 billion in 2025, significantly exceeding Google Cloud's $13.9 billion, highlighting Amazon's profitability advantage in the cloud services sector, even as its overall market share declines.
- Cash Flow Situation: Despite generating $139.5 billion in operating cash flow in 2025, the anticipated $200 billion capital expenditure is expected to lead to negative free cash flow in 2026, yet the company continues to execute strongly, with quarterly revenue rising 14% to $213.4 billion.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 222.690
Low
250.00
Averages
294.69
High
340.00
Current: 222.690
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.
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