AMZN Stock Set For A Major Upswing?

Amazon stock (NASDAQ: AMZN) has a history of delivering impressive, rapid returns, with the stock achieving over 30% gains in less than two months on 13 separate occasions, notably in 2010 and 2020. If these historical patterns persist, upcoming catalysts could propel AMZN stock to extraordinary new highs, offering significant benefits to shareholders.

Key Factors That May Elevate AMZN Stock

Several high-growth areas are poised to drive Amazon’s stock higher:

1. AWS and AI Growth: The Amazon Web Services (AWS) segment is a major growth engine. In Q2’25, AWS sales reached $30.9 billion, a 17.5% increase year-over-year. Furthermore, increasing the operating margin from 32.9% in the latest quarter to over 38% (as seen in Q3’24) could boost operating income by an additional $1.6 billion, signaling strong profitability potential tied to AI-driven demand.
2. Accelerating Advertising Revenue: Amazon’s high-margin advertising business continues to expand rapidly. Q2’25 advertisement revenue reached $15.7 billion, marking a 22% year-over-year increase. This growth in a high-margin area is a substantial contributor to overall profitability.
3. Strong International Earnings Turnaround: The company has demonstrated a massive improvement in its international segments. Q2’25 International Operating Income was $1.5 billion, a remarkable 448% increase. Continued strength in these international operations is expected to further enhance Amazon’s overall profitability.

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Current Financial Status

It undoubtedly helps if the financial fundamentals are solid. For insights on AMZN, visit Buy or Sell AMZN Stock. Below are some key metrics to note.

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How Does The Stock Perform During Tough Times?

When considering risk, it’s useful to assess Amazon’s performance during challenging market conditions. It experienced a nearly 94% decline during the Dot-Com Bubble, which is substantial. The Global Financial Crisis affected it by approximately 65%, and the Inflation Shock of 2022 also had a severe impact, resulting in a decline of over 56%. Even less extreme events, such as the 2018 correction and the COVID-19 selloff, caused drops of around 34% and 23%, respectively. Look at – How Low Can Amazon Stock Really Go – for more details. Therefore, despite the favorable indicators, Amazon’s past indicates that it can incur significant losses when the market declines.

However, risk is not confined to major market downturns. Stocks can decline even amid favorable market conditions – consider situations such as earnings announcements, business updates, and outlook revisions. To observe how the stock has bounced back from sharp downturns historically, refer to the AMZN Dip Buyer Analyses.

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