Amazon (AMZN) faced a tough year in 2025, trailing the S&P 500’s 18% gain with a modest 5% rise. However, this downturn may present a strong opportunity for investors to buy shares. With the holiday season approaching and significant growth in its AI and cloud segments, Amazon is set to see potential growth. Below are three key reasons why investors should consider buying AMZN stock today.
The fourth quarter of the year is crucial for Amazon. This period, which includes the holiday season, typically sees the highest sales volume of the year. Preliminary results from Visa show that e-commerce spending rose 7.8% year over year in 2025. Amazon controls around 40% of U.S. e-commerce, so this increase bodes well for its upcoming earnings report.
Physical retail accounted for 73% of total holiday spending. This is encouraging news for Amazon, as it indicates a large opportunity to shift more retail spending to online platforms. As more consumers choose to shop online, Amazon’s market share could expand, driving future growth for the company.
Amazon Web Services (AWS) is the largest cloud provider globally, holding about 29% of the market share. AWS experienced a 20% year-over-year increase in sales during the third quarter of 2025. As demand for artificial intelligence (AI) solutions grows, AWS is poised to benefit, especially with its heavy investments in AI.
Amazon is dedicating substantial resources to developing its AI capabilities. The company spent about $125 billion in 2025 to expand its AWS cloud infrastructure and plans to increase this in 2026. As more clients migrate to the cloud and adopt AI tools, AWS sales are expected to keep growing, which will likely drive further growth in AMZN stock.
Despite Amazon’s strong performance, its stock has not risen significantly over the past year. The stock is trading at a price-to-earnings (P/E) ratio of 33. While this is not particularly low, it seems fair given Amazon’s market dominance and growth potential in both e-commerce and cloud services.
CEO Andy Jassy is confident that the move to the cloud and increased use of AI will fuel growth over the next decade. With this long-term growth potential, the current stock price may be seen as an opportunity for investors looking for strong returns in the future.
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