Is Amazon a purchase, sale or maintenance in 2025?

Amazon‘S (Nasdaq: amzn) The share price has increased by 38% in the past three years, which its returns almost identical to power S&P 500‘S over the same time frame. Beating the market is the long -term goal of many investors. Therefore, it is understandable why some may be wondering what the best course for Amazon is.

I think there are several convincing reasons why sticking to your Amazon share, if you have it or buying stocks, could still be a great strategy. Here are three reasons for buying (or keeping) Amazon shares in 2025.

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Ai cloud computing is just starting

Some investors were disappointed with the recent results of the fourth quarter of Amazon, in which Amazon Web Services’s turnover (Amazon Web Services) of the company $ 28.79 billion slightly missed Wall Street Consumption of $ 28.84 billion. Nevertheless, AWS’s sales increased by 19% compared to the previous year, and the segment made 50% of the overall operating result of Amazon.

I think investors who have reacted have negatively missed the overall picture with Amazon and its cloud options. AWS is still the leading cloud provider with 31% of the market share Microsoft With 20%.

This brings Amazon to an astonishing position to benefit because the demand for artificial intelligence (AI) Cloud Computing is growing. Companies are in a race for the most capable AI services and Goldman Sachs It is estimated that Amazon, as an undisputed market leader in cloud computing, could achieve global sales of US dollars by 2030.

Amazon still dominates e-commerce

While many retailers have made progress in their e-commerce offers, they still fall behind Amazon’s dominance. Compared to the competition, the company has around 40% of the US e-commerce market compared to competition Walmart7%.

And the company continues to improve its platform and the delivery network to make purchases even better for customers. Amazon delivered over 65% more articles to his Prime members on the same day when they were ordered in the fourth quarter of 2024 compared to a previous year. It also had a record week of Black Friday and Cyber ​​Monday last year.

The result was that North American sales rose 10% to 115.6 billion US dollars in the fourth quarter and the operating result from the segment rose by 43% to 9.3 billion US dollars.

E-commerce accounted for around 16% of all retail sales in the United States last year and, according to EMARKETER, will increase to 20% by 2028. With the leading position of Amazon and more e-commerce growth on the way, the company is an advantage.

Advertising is still a winner

It is worth mentioning that Amazon’s advertising business continues to expand. The advertising turnover rose 18% to 17.3 billion US dollars in the fourth quarter. In order to put this in the right light, Amazon had only 12.6 billion US dollars yearly Advertising sales in 2019.

According to Statista estimates, Amazon will take around 15% of the digital advertising market this year this year, which makes the company an increasing threat to other online advertising companies. Amazon’s advertising revenues exceeded $ 56 billion in 2024, and management will achieve an annual turnover of $ 69 billion in the amount of US $ 69 billion this year.

Although it is not the most important business of Amazon, it has become a healthy addition to the company’s growing dominance in the new markets.

Is there a case to sell Amazon?

I don’t think the sale of Amazon shares is currently giving a big case. Of course, there are always legitimate financial reasons for selling a share, e.g. B. the purchase of a house or the payment of a child’s tuition fees.

Amazon continues to benefit from its core shops for e-commerce and cloud computing companies and offers increasing opportunities from smaller segments such as advertising. Since the company is a clear market leader in its respective markets, the purchase of Amazon (or holding what you have) still looks like an intelligent step.

And although the share is not exactly cheap, compared to the 23.8 of the S&P 500, a forward price profit multiple multiplier is 32.3-it is still relatively inexpensive in view of the long-term prospects of the company.

Should you now invest 1,000 US dollars in Amazon?

Before you buy stocks in Amazon, you should consider the following:

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