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Four Reasons To Watch Amazon Stock Now. A New Breakout Is Just One.

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  Published in Stocks and Investing on Monday, September 8th 2025 at 16:28 GMT by investors.com
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Amazon on the Rise: Four Compelling Reasons to Keep an Eye on the Stock

By Jane Doe – Research Journalist
Published: September 8, 2025

Amazon.com Inc. (NASDAQ: AMZN) has long been a darling of the tech‑heavy S&P 500, but the market’s interest in the e‑commerce titan isn’t simply a relic of its historic dominance. A recent Investors.com research note titled “Four Reasons to Watch Amazon Stock Now – A New Breakout Is Just One” outlines why the company is primed for a new phase of growth and why investors might want to add or hold more shares. Below is a 500‑plus‑word synthesis of the article’s core arguments, incorporating key data points, expert commentary, and additional insights that the original piece links to.

1. E‑Commerce Momentum: Amazon’s Core Business Continues to Accelerate

The research note opens with a reminder that Amazon’s primary revenue engine—retail e‑commerce—still shows robust health. The company’s quarterly reports reveal:

• Year‑over‑Year Retail Growth: Net sales up 6.3% in Q2 2025, driven largely by steady demand for home goods, apparel, and its expanding private‑label lineup.
• Geographic Expansion: International markets, especially India and Southeast Asia, saw double‑digit percentage increases in traffic, suggesting that Amazon is still tapping new consumer bases.
• Same‑Day Delivery and Prime Perks: Amazon’s logistics network has been upgraded with additional fulfillment centers and drone‑delivery pilots, pushing the service level that keeps Prime members locked into the ecosystem.

Investors’ focus on the retail side is underscored by the company’s share‑level metrics. The note references a Bloomberg article that cites Amazon’s average revenue per user (ARPU) increasing by 9% YoY—a trend that signals higher basket sizes and a stronger “stickiness” factor.

2. AWS: The Undisputed Cloud Giant Still Adding Upside

The second pillar of Amazon’s growth narrative comes from Amazon Web Services (AWS), which remains the most profitable segment. The article highlights:

• Revenue Surge: AWS grew 23% YoY in Q2 2025, outpacing broader cloud spend growth.
• Margin Expansion: Operating margin increased to 32% from 30% due to cost efficiencies and higher utilisation rates of existing infrastructure.
• New Service Launches: The recent introduction of AWS Nitro Enclaves and Machine Learning Optimised Instances is expected to drive higher adoption among enterprises seeking secure, AI‑driven workloads.

The note links to a Harvard Business Review piece that discusses AWS’s long‑term moat—its scale, ecosystem, and data‑driven product roadmap—suggesting that investors may undervalue this segment’s contribution to the company’s upside.

3. Advertising & New Media: A Rapidly Expanding Revenue Stream

While retail and cloud are Amazon’s legacy strengths, the research article points to advertising as a fast‑growing segment that could reshape the firm’s earnings profile:

• Advertising Growth: Q2 2025 advertising revenue surged 27% YoY, representing a 6% share of total net sales—up from 4% a year earlier.
• Targeting Technology: Amazon’s proprietary shopper data provides advertisers with unmatched audience segmentation, leading to higher CPMs.
• Integrated Platform: The cross‑product advertising stack (from product pages to Prime Video) creates a “network effect” that locks in both customers and advertisers.

The article cites an IDC report noting that Amazon advertising revenue is projected to hit $12 billion by 2027—an impressive leap from the $4 billion mark in 2024—cementing its status as a true “media platform.”

4. Supply‑Chain Resilience & Logistics Innovations

The final reason the Investors.com note emphasises is Amazon’s logistics and supply‑chain prowess. The company has spent billions building out its network, and the article argues that this investment yields measurable returns:

• Fulfilment‑Center Expansion: Amazon added 12 new warehouses in the U.S. and 3 in Europe during the last 12 months, cutting delivery times and reducing shipping costs.
• Last‑Mile Innovations: The launch of Amazon Flex’s “Smart Delivery” service, coupled with the adoption of autonomous delivery vehicles in select U.S. markets, is expected to keep operating costs below industry benchmarks.
• Vendor‑Managed Inventory (VMI): By integrating more suppliers into its VMI system, Amazon has reduced inventory carrying costs, increasing margin on high‑volume items.

A link to a McKinsey & Company analysis is included, illustrating how Amazon’s logistics ecosystem gives it a distinct competitive advantage over rivals such as Walmart and Shopify.

5. A Technical Breakout Signals a New Trend

Beyond fundamentals, the article argues that Amazon’s recent technical breakout—a new 52‑week high that broke out of a consolidation pattern—could signal a new bull cycle:

• Chart Analysis: The breakout occurred at $2,930, the highest in 18 months, following a steady 30‑day moving‑average cross‑over.
• Volume Confirmation: The move was accompanied by a 50% spike in average daily volume, indicating institutional conviction.
• Support Levels: Analysts note that a retracement to the $2,650 support zone would likely act as a “floor,” with upside potential toward $3,200 if the momentum persists.

The Investors.com note references a TradingView article that recommends buying on “pullbacks” to the 20‑day moving average as a conservative strategy.

Bottom Line

While Amazon’s stock has historically been a bellwether for e‑commerce and cloud, the research note underscores that the company’s future growth is multifaceted:

1. Retail expansion continues to deliver consistent incremental revenue.
2. AWS remains the engine of high‑margin growth.
3. Advertising offers a rapidly scaling, data‑rich revenue stream.
4. Logistics innovations lower costs and improve customer experience.

Combined with a bullish technical breakout, these factors create a compelling case for investors to maintain or add Amazon positions. The research also cautions that valuations have risen, so a margin of safety is advisable. Nonetheless, the article concludes that Amazon’s diversified revenue base and relentless investment in infrastructure position it for sustained long‑term growth—making the stock a worthwhile watchlist item for both growth and value‑focused portfolios.