It has certainly been a struggling year for the US stock market. Amid increased geopolitical tensions and economic frailty, a host of mega-cap stocks are down, with outlooks getting increasingly concerning. However, Amazon (AMZN) has confirmed its impressive growth trajectory, hosting its Amazon Web Services (AWS) business revenue reaching $108 billion, while its AI sector has sported ‘triple-digit’ growth.
The update was provided by company CEO Andy Jassy, who recently shared his 2024 shareholder‘s letter. Yet, the biggest question now is just what this means for the company’s stock this year. Can the impressive data set a course correct for the firm? Or will it continue to suffer amid macroeconomic headwinds?
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Amazon AWS and AI Get Massive Growth Update From CEO: What Does It Mean for the Stock
2025 has not been kind to any of the Magnificent Seven stocks, with no company being exempt from the challenges. Subsequently, Amazon (AMZN) has also been caught up in the challenges facing the US stock market. Although shares rebounded over 1% on Friday, they are still down more than 16% year-to-date and trading at the $183 level.
However, that doesn’t take away from some of the more impressive facets of its business. According to Amazon CEO Andy Jassy, AWS has reached $108 billion in revenue with its AI business boasting “triple-digit” growth. Indeed, the data shows the company is strong in what is likely its most promising sectors.
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“Generative AI is going to reinvent virtually every customer experience you know and enable altogether new ones about which we’ve only fantasized about,” Jassy wrote. Moreover, its AI endeavor will only strengthen its AWS cloud-computing business. Its integration should allow its lead in the market to only grow stronger.
“The key primitives (or building blocks) for AI development” is the company’s AI push, Jassy said. Moreover, he stated that the Trainium2 chips offer “30-40% better price-performance than the current GPU-powered compute instances generally available today.”
If it can continue to grow in those two sectors, things should look increasingly bright for the e-commerce juggernaut. Indeed, if the market rebounds, tech should be back to its winning ways. Moreover, in that industry, there may not be a stronger investment than in Amazon.