Amazon's Strong Commerce and AWS Prospects Support its Rally

Amazon's stock rally is expected to continue due to robust commerce and AWS prospects. The company remains compelling despite recent recovery, making it a good opportunity to buy on dips. Amazon's valuation is attractive, with a 10-year P/E ratio near the stock's price. The stock's strong fundamentals and growth prospects make it a good investment option.

Amazon.com Inc. (NASDAQ: AMZN) has been a standout performer in the tech and retail sectors, and recent developments suggest that its stock rally is likely to continue. The company's robust commerce and AWS (Amazon Web Services) prospects make it a compelling investment opportunity, even after recent recovery.

Amazon's stock has shown resilience, with a year-to-date gain of 1.42% despite a series of adjusted price targets from analysts. For instance, Truist raised its price target on AMZN to $250 from $226, while Bank of America raised its target to $248 from $230 [1]. These positive analyst revisions reflect the company's strong fundamentals and growth prospects.

One of the key drivers behind Amazon's stock performance is its AWS division, which continues to grow at a rapid pace. In the first quarter of 2025, AWS generated $117 billion in revenue, representing a 17% year-over-year increase [1]. This growth is expected to continue, with analysts projecting earnings growth of 17.91% in the coming year [3].

Moreover, Amazon's push into artificial intelligence and robotics is expected to drive further efficiencies and cost savings. The company has deployed its 1 millionth robot and is expanding its same-day delivery services, which should enhance its competitive edge in the retail market [1].

While Amazon faces some headwinds, such as ongoing labor issues and potential recession risks, its strong balance sheet and diversified revenue streams make it a resilient player. The company's valuation, with a 10-year P/E ratio near the stock's price, also suggests that it is attractively priced relative to its peers [3].

In conclusion, Amazon's stock rally is expected to continue due to robust commerce and AWS prospects. The company's strong fundamentals and growth prospects make it a good investment option, especially for those looking to buy on dips. However, investors should remain vigilant and monitor the company's progress in the coming quarters.

References:
[1] https://247wallst.com/investing/2025/07/14/amazon-stock-price-prediction-where-will-it-be-in-1-year/
[2] https://finance.yahoo.com/quote/AMZN/
[3] https://www.marketbeat.com/stocks/NASDAQ/AMZN/