Amazon’s Performance and Future Outlook
Amazon (NASDAQ: AMZN) reported a stock increase of approximately 5% in 2025, underperforming the S&P 500, which rose 16%. Despite this, the company demonstrated strong results across its various business segments, especially in Q3, where its advertising services generated $17.7 billion in revenue, reflecting a 24% year-over-year growth.
Amazon Web Services (AWS), which contributed 66% of the company’s operating profits despite accounting for only 18% of total revenue, posted an operating margin of 35%. The company’s forward PE ratio stands at 29, indicating that while Amazon is performing reasonably well, it is also valued similarly to its peers. Analysts suggest that if the trends in advertising and AWS continue, Amazon could see significant profit growth in 2026.
