Let's Analyze

Let's Analyze

Share this post

Let's Analyze
Let's Analyze
Is Amazon (AMZN) a Buy?

Is Amazon (AMZN) a Buy?

Let's dig into it...

Robert Ross's avatar
Robert Ross
May 07, 2025
∙ Paid

Share this post

Let's Analyze
Let's Analyze
Is Amazon (AMZN) a Buy?
Share

Overview: Amazon (AMZN) is the leading U.S. e-commerce retailer and among the top e-commerce sites globally. Amazon also provides Amazon Web Services (AWS), which is the global leader in cloud-based Infrastructure-as-a-Service (IaaS) platforms.

Bulls Say

  • Amazon is the clear leader in e-commerce and enjoys unrivaled scale to continue to invest in growth opportunities and drive the very best customer experience.

  • High-margin advertising and AWS are growing faster than the corporate average, which should continue to boost profitability over the next several years.

  • Amazon Prime memberships help attract and retain customers who spend more with Amazon; this reinforces a powerful network effect while bringing in recurring and high-margin revenue.

Bears Say

  • Regulatory concerns are rising for large technology firms, including Amazon. Further, the firm may face increasing regulatory and compliance issues as it expands internationally.

  • New investments, notably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s penetration into some countries might be harder than in the US due to inferior logistic networks.

  • Amazon may not be as successful in penetrating new retail categories, such as luxury goods, due to consumer preferences and an improved e-commerce experience from larger retailers.

Technical Analysis: AMZN’s short-term technical picture is BEARISH while their long-term technical picture is NEUTRAL:

Robert's Conclusion

Amazon remains a dominant force in both e-commerce and cloud computing—two of the fastest-growing industries globally. Its scale, selection, and efficiency in retail are unmatched, and it continues to take market share even as the overall e-commerce market matures. On the tech side, AWS is a key beneficiary of the AI boom, with cloud spending accelerating across sectors.

Despite its strengths, Amazon isn’t without risks.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 TikStocks
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share