Amazon's Tug of War - Balancing Cloud Challenges and e-Commerce Dominance

# Navigating Amazon's Stock: Cloud Challenges vs. E-commerce Strength | Market Analysis Podcast

Dive into our latest episode examining Amazon's current market position at $222 as of August 2025. We break down the contrast between Amazon Web Services' concerning slowdown and the company's thriving e-commerce divisions. Discover why 90% of analysts maintain "buy" ratings despite cloud computing headwinds, with price targets averaging $265. Learn how recent AI talent departures might impact Amazon's competitive edge, while logistics innovations strengthen its retail operations. This essential analysis explains why AMZN is underperforming the tech sector but remains a favored long-term investment. Perfect for investors watching for signs of AWS recovery as the potential catalyst for Amazon's next significant price movement.

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Episode Transcript

Speaker 1 (00:00):
Amazon stock is trading at approximately two hundred twenty two
United States dollars as of August twenty second, twenty twenty five. Yesterday,
the share price closed at two hundred twenty one dollars
and ninety five cents, with the daily trading volume of
just over thirty two million shares, which puts turnover at
roughly seven point one two billion United States dollars for

(00:21):
the day and secures Amazon's place as fifth in overall
trading volume on the market. This volume is comfortably in
line with Amazon's typical activity and signals no extraordinary investor
rush or panic. Recent news surrounding Amazon has drawn attention
to several important developments. On the positive side, analysts remain

(00:42):
overwhelmingly bullish, with more than ninety percent maintaining a by rating,
due to the company's scale and diversification. Notably, financial institutions
including Stifle, Nicolauis and Barclay's have recently raised their price
targets to two hundred sixty two and two II one
hundred and seventy five United States dollars, respectively, which reflects

(01:04):
growing optimism regarding Amazon's future earnings power. The average analyst
forecast now sits around two hundred sixty five United States dollars. However,
there are clear challenges. The most significant headwind comes from
softness in Amazon web Services, the cloud computing business that
has historically powered much of Amazon's profit growth. Slower cloud growth,

(01:27):
particularly in artificial intelligence and compared to rivals like Microsoft
and Google, has led some market observers to urge caution,
especially since Amazon remains highly reliant on this segment to
drive overall profitability. Further complicating matters, recent high profile talent
departures from Amazon's artificial intelligence division may impact its competitiveness

(01:51):
in cutting edge cloud offerings. Despite these concerns, Amazon's core
North American e commerce and international business lines continue to
show robust performance, with double digit gains and online sales
and expanding grocery delivery initiatives. Operational improvements and robotics in
supply chain logistics are expected to boost future margins. In summary,

(02:13):
Amazon stock is currently under performing the broader technology index
for the year, but analyst confidence, ongoing innovation, and broad
business strength maintain its reputation as a premier long term
growth stock. Investors are watching Amazon Web Services trajectory closely
as renewed momentum there will likely serve as the catalyst

(02:34):
for the next leg higher in the share price.