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1 Reason to Be Very, Very Excited About Amazon Stock Right Now | The Motley Fool

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  Published in Stocks and Investing on Sunday, September 28th 2025 at 21:11 GMT by The Motley Fool
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Why I’m “Very, Very” Excited About Amazon Stock Right Now

An in‑depth look at the company’s most recent moves, the markets’ reaction, and the long‑term upside that keeps my portfolio eyes on Amazon.

1. Amazon’s AI‑First Shift

The headline driver behind my bullish stance on Amazon is the company’s aggressive push into artificial intelligence. Over the past year, Amazon has rolled out a suite of AI products that are poised to reshape everything from e‑commerce to cloud computing.

Amazon Bedrock and “Generative AI for Business”
Amazon Bedrock, launched in June, offers a fully managed service that lets businesses build and scale generative AI applications. By giving developers access to pre‑trained models from Amazon, Microsoft, Anthropic, and others, Bedrock removes the need to own costly GPU clusters. The article points out that Amazon’s early mover advantage here is huge: unlike Google or OpenAI, Amazon already has a massive data backbone via its e‑commerce catalog and AWS infrastructure. This gives Bedrock a richer training set and a built‑in customer base.

Alexa, LLMs, and Personalization
Amazon’s Alexa voice assistant has quietly integrated large language models (LLMs) to improve conversational quality and context retention. The article explains that Amazon is using these models to better recommend products during a user’s shopping session. If successful, this could increase conversion rates on Amazon.com and add new monetization channels for Amazon Advertising.

The AWS Edge
AWS’s AI portfolio has expanded beyond the well‑known SageMaker. New offerings such as Amazon Vertex AI (now rebranded as Amazon SageMaker JumpStart) make it easier for enterprises to jump straight into AI with “no-code” interfaces. Coupled with AWS’s edge‑compute capabilities, Amazon can deliver low‑latency inference for real‑time applications—an attractive proposition for sectors like gaming, autonomous vehicles, and healthcare.

2. E‑Commerce Still Dominates

While AI is the headline, the fundamentals of Amazon’s e‑commerce core remain rock‑solid. The article reminds readers that Amazon’s gross merchandise volume (GMV) continues to grow at double‑digit rates, and that the company’s prime membership base is expanding faster than any other retailer.

Prime Video & Content
Amazon’s streaming arm, Prime Video, is reportedly surpassing the “content churn” metrics that have plagued other platforms. New original series and exclusive licensing deals are keeping subscriber acquisition high. The article links to a separate piece that analyzes Prime Video’s subscriber growth, noting a projected 20% YoY increase.

Prime Air & Last‑Mile Delivery
Prime Air’s drone‑delivery program, once a niche experiment, is moving closer to commercial rollout. Amazon has secured regulatory approvals in several U.S. states and is testing a “delivery‑by‑8” promise in selected cities. The cost‑efficiency of drone delivery could further reduce Amazon’s last‑mile logistics expense, boosting margins in an industry that traditionally sees thin profits.

3. AWS: The Profit Engine

Amazon Web Services (AWS) remains the company’s “profit engine” and, as the article highlights, the largest player in the cloud market. The growth trajectory of AWS is now partly driven by AI workloads.

Data‑Center Expansion
AWS is opening new regions in Asia and Europe, and the article notes that each new region typically adds an estimated $1–$2 billion in annual revenue. The strategic placement of data centers closer to emerging markets also gives Amazon an edge in latency‑sensitive AI applications.

AI‑Optimized Instances
New instance types such as the “Inferentia” and “Trainium” chips are tailored for deep‑learning inference and training. The article quotes AWS CEO Adam Selipsky on the company’s commitment to “AI‑first” services, reinforcing the idea that Amazon is positioning itself as the go‑to platform for both enterprises and developers.

4. New Business Verticals

Amazon’s expansion into new verticals adds a layer of diversification that mitigates the cyclical nature of retail.

Healthcare and Pharmacy
The article discusses Amazon’s acquisition of PillPack and the partnership with CVS Health, which together form a new “Amazon Pharmacy” service. This move signals Amazon’s ambition to become a major player in the health‑care e‑commerce space. By leveraging its logistics network and data analytics, Amazon can potentially offer lower drug prices and faster delivery than traditional pharmacies.

Advertising
Amazon’s advertising business is outpacing that of its peers. With a vast data set on consumer behavior, Amazon can provide highly targeted ad solutions to e‑commerce and media companies. The article cites a recent earnings report where Amazon’s advertising revenue grew by 35% YoY, a figure that underscores the segment’s role as a future growth engine.

5. Market Perception & Valuation

The author of the article notes that Amazon’s stock has been trading in a relatively tight range despite the company’s impressive performance metrics. The main reason cited is a “cautious” market stance on growth stocks during periods of elevated inflation and interest rates.

Analyst Upgrades
Recently, multiple analysts have upgraded Amazon’s target price, citing the AI‑first strategy as a catalyst for sustained growth. The article links to a recent consensus from a group of analysts that projects Amazon’s price target to climb from $115 to $140 over the next 12 months.

Risks
The piece does not shy away from potential downside risks. Competitive pressure from Microsoft’s Azure OpenAI, regulatory scrutiny in the EU, and the high cost of maintaining a global logistics network are mentioned as headwinds. Still, the author argues that Amazon’s diversified portfolio and scale give it a moat that is difficult for competitors to breach.

6. Bottom Line: A Long‑Term Bet

Putting all the pieces together—AI, e‑commerce, AWS, healthcare, and advertising—the article concludes that Amazon is poised for a new era of growth. While short‑term volatility is inevitable, the fundamental trends are compelling:

Given these factors, the article argues that Amazon’s current valuation is undervalued relative to its long‑term earnings trajectory. The “very, very excited” tone is not just hype but a strategic assessment that Amazon’s AI initiatives will create a compounding growth engine for the next decade.

Final Thought

In a world where tech giants are under constant scrutiny, Amazon’s unique blend of retail, cloud, AI, and healthcare initiatives positions it not just as a single‑industry leader but as a diversified conglomerate that can adapt to changing market dynamics. If you’re looking to add a high‑growth, AI‑driven company to your portfolio, Amazon’s stock merits serious consideration—and perhaps a fresh allocation of capital.