Amazon’s Stock Performance and Business Outlook
Amazon (NASDAQ: AMZN) has seen its stock increase by only 38% over the past five years, significantly trailing the S&P 500’s nearly 67% gains. As of March 26, 2023, Amazon’s stock is down approximately 6.5% year-to-date.
Amazon Web Services (AWS), which holds a 28% market share, is a crucial component of the company’s profitability, contributing 57% of operating income despite only accounting for 18% of total revenue in 2025. The latest quarter reported a 24% year-over-year revenue growth for AWS, marking its fastest growth in 13 quarters, and the platform boasts a $244 billion backlog of undistributed services.
Additionally, Amazon’s advertising segment is increasingly vital, generating over $21.3 billion in revenue—up 23% year-over-year—thanks to its vast data resources. The company is also automation-focused in its e-commerce operations, having deployed over one million robots in its facilities.
