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Summary
- Amazon.com, Inc. stock has outperformed its peers despite slow AI growth and deceleration at AWS.
- The company’s core retail business is expected to stay resilient, supported by optimized utilization in e-commerce.
- AWS is expected to reaccelerate growth in the second half, driven by emerging opportunities in generative AI.
- Advertising remains a strong emerging revenue stream with favorable profitability prospects.
- I am Livy Investment Research, an analyst and investor covering the disruptive tech sector. I run the investing group Livy Investment Research, where I aim to find hidden value in the rapidly-evolving technology landscape.
Amazon.com, Inc. (NASDAQ:AMZN) stock has been a strong gainer among the megacaps this year, outperforming its hyperscaler peers despite a slow start to the generative AI frenzy and ongoing deceleration and margin deterioration at Amazon Web Services (“AWS”). And the stock has remained resilient post-earnings, supported by another consecutive quarter of double beat, primarily driven by improvements to core e-commerce segment growth and profitability, partially offset by continued deceleration in AWS.
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