Where We Think Amazon Stock Will Trade After The Q2 Surprise

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.

Amazon warehouse facility storefront exterior in Houston, TX.

Brett_Hondow/iStock Editorial via Getty Images

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


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