Amazon (AMZN) shares have surged nearly 15% this month, driven by a positive shift in investor sentiment following a ceasefire between the U.S. and Iran. This rebound is attributed to strong business performance, particularly within Amazon Web Services (AWS), which saw a year-over-year revenue increase of 24% in 2025, reaching $128.7 billion. Analysts believe Amazon’s stock was previously oversold due to an initial adverse reaction from a minor Q4 earnings miss.
Despite a slight earnings per share (EPS) miss of $1.95 against an expectation of $1.98, Q4 sales reached $213.38 billion, surpassing projections. The company’s CEO, Andy Jassy, announced a significant capital expenditure (CapEx) plan of $200 billion for this year, primarily for AI-related AWS infrastructure, reflecting a long-term growth strategy. Amazon’s strong balance sheet showcases over $123 billion in cash and equivalents, with total assets of $818 billion against liabilities of $406.97 billion.
Looking ahead, Amazon’s annual EPS is projected to grow by 8% to $7.78, with an anticipated spike of 20% to $9.32 in FY27. The company’s growth trajectory indicates a potential pathway toward $1 trillion in annual revenue by 2030, with more than 10% annual growth expected for the foreseeable future.
