Amazon’s 2025 Performance and Future Outlook
Amazon (NASDAQ: AMZN) recorded a total return of 5.2% in 2025, significantly underperforming the S&P 500’s 17.9% return. However, expectations for 2026 are more optimistic, mainly due to anticipated growth in Amazon Web Services (AWS), which saw a year-over-year increase of 20% in the third quarter of 2025.
Amazon’s cloud computing division is the company’s primary profit driver, yet its growth has been limited by insufficient compute capacity. To address this, Amazon plans to double its capacity by the end of 2027. The company is also positioning itself to capitalize on the agentic AI market with Amazon Bedrock, potentially enhancing long-term revenue.
