Key Points
- Amazon is expected to spend more than $100 billion on capital expenditures in 2025.
- AWS is losing market share, dropping from 33% in 2022 to 30% in 2024, as competitors like Google Cloud and Microsoft Azure gain ground.
Amazon (NASDAQ: AMZN) reported revenues of $155.7 billion in Q1 2025, an 8.6% increase year-over-year, with profits rising to $17.1 billion. However, its stock is only up less than 2% this year amid tariff threats impacting its e-commerce business.
| Segment | Q1 2025 Sales | Q1 2025 Expenses | Q1 2025 Profit | Q1 2025 Margin |
|---|---|---|---|---|
| North America | $92.88 billion | $87.04 billion | $5.84 billion | 6.3% |
| International | $33.51 billion | $32.49 billion | $1.01 billion | 3% |
| AWS | $29.26 billion | $17.72 billion | $11.54 billion | 39.4% |
With AWS accounting for a significant portion of Amazon’s profits, its decline in market share could jeopardize future performance, prompting the company to invest heavily in AI and infrastructure.
