Amazon’s Growth and Future Prospects
Amazon (NASDAQ: AMZN) experienced a modest stock gain of only 5% in 2025, despite significant growth in business segments such as e-commerce, online advertising, and cloud computing. In Q3, the company’s overall revenue rose by 13% year-over-year, with net income increasing 38%, indicating strong financial health even as stock performance lagged.
Amazon’s online advertising revenue surged by 24% year-over-year to reach $17.7 billion, positioning the company competitively against Meta Platforms and Alphabet, which reported $51.2 billion and $65.9 billion in ad revenue for the same quarter, respectively. Additionally, Amazon Web Services (AWS) achieved a growth rate of 20%, bolstered by increased demand for AI-driven cloud computing solutions.
Amazon is also enhancing its AI capabilities through the use of proprietary Trainium2 chips, resulting in a 150% sequential growth in this segment, which has turned into a multibillion-dollar business. These advancements signal promising growth potential for the company moving into 2026 and beyond.
