Amazon.com, Inc. (AMZN)
Amazon.com, Inc. stands out as a structurally diversified tech leader, making it a compelling long-term portfolio core among the Magnificent 7 stocks. AMZN's growth is driven by AWS, advertising, and third-party marketplace services, with recent heavy CapEx investments expected to fuel future free cash flow rebounds. Despite short-term free cash flow compression and competitive risks, AMZN's fundamentals remain strong, supported by operational efficiency and a robust balance sheet.
Meta Platforms may be spending vast amounts of cash on projects that are far from paying off, but its profit margins are still wide. The growth of Amazon's cloud-computing operation isn't slowing, which will likely drive strong increases in its operating profits.
Amazon is rebranding its ambitious effort to expand global access to high-speed internet: Project Kuiper will now be known as Amazon
As the Dow hits a record above 48,000, optimism grows for a year-end rally -- making AMZN, NVDA, JPM, and MMM top stocks to watch.
We believe there is little to worry about with AMZN stock given its overall Strong operating performance and financial status. Year-to-date, the stock has gained just about 10%, trailing the Nasdaq-100's 20% plus advance.
Amazon.com, Inc. remains a Strong Buy, driven by robust financials, expanding AI initiatives, and strategic positioning in e-commerce and cloud. AMZN delivered strong Q3 2025 results, with revenue and EPS growth outpacing expectations, highlighting operating leverage and improved cash flow. Aggressive AI infrastructure investments, highlighted by the $38B OpenAI deal, and expanding AWS partnerships reinforce AMZN's leadership in cloud and innovation.
Recessions can force investors to sell growth stocks too soon. Income first: Ensure bills are paid before speculating on growth. Diversification with income holdings provides an all-terrain portfolio.
Amazon's focus on improving the shopping experience with AI makes the stock an attractive long-term investment. Its Rufus AI shopping assistant has driven $10 billion in incremental annualized sales, and that's just the start.
Buffett declined to invest in Amazon for years. Berkshire Hathaway finally invested in 2019.
Amazon has huge opportunities in artificial intelligence (AI), which is already bringing in billions for the company. AWS sales growth accelerated in the third quarter.