Why | Buy Amazon Stock

: Ad revenue carries operating margins exceeding 50% , compared to 5-7% for core retail.

Amazon Web Services (AWS) remains the world’s leading cloud provider with a . After a temporary slowdown, growth has reaccelerated to 24% year-over-year as of late 2025, driven by a $200 billion capital expenditure plan focused on AI data centers. why buy amazon stock

: Amazon’s custom chips, like Trainium2 and Graviton4 , offer 30-50% better price-performance than third-party GPUs, allowing Amazon to undercut competitors while protecting its own margins. 2. The High-Margin Advertising Engine : Ad revenue carries operating margins exceeding 50%

Advertising has quietly become Amazon's fastest-growing segment, generating over . like Trainium2 and Graviton4

: AWS has an enormous $244 billion backlog , providing high visibility into future revenue.