Amazon (AMZN) has emerged as a top pick for traders, with the market looking like it may bounce back in the short term. Although there is still no shortage of macroeconomic factors holding prices at bay, the e-commerce juggernaut has some enticing avenues of future gains, making it an enticing stock to buy now and hold.
If you invested in Amazon (AMZN) five years ago, your ROI on current prices would mean gains of just over 40%. However, that also accounts for the slump that the market has seen over the last 3-4 months due to tariff concerns. Had that market collapse not happened, AMZN stock was looking at an ROI of nearly 90% entering 2025. Since April 2005, shares have even catapulted 10,590% higher, as of April 13.
Currently trading at $178 a share, should you purchase Amazon stock now? If so, what would your profits look like in the future?
Amazon (AMZN): A Top Stock to Buy and Hold in 2025?
Several experts are bullish on Amazon stock despite the slow start to 2025. Analysts at Morgan Stanley expect more growth for Amazon (AMZN) and its stock, even if the US stock market continues to slow. The firm’s analysts recently lowered their estimates for Amazon’s earnings and cloud services growth, as well as slashed their price target for AMZN shares. Despite this, the firm kept an “overweight” rating on the stock, signaling the company could quickly correct and improve the new stock forecast.
Most investors are familiar with Amazon’s online sales platform. The business sells a wide variety, with low prices and fast delivery a key focus. According to Statista, 38% of all online retail sales in the U.S. are represented by Amazon. Given that e-commerce is still less than 17% of all retail sales domestically, there should still be a large opportunity for Amazon to capture.
For the U.S. e-commerce industry, Morgan Stanley now projects a 6% growth in 2025 and 2026, compared to its prior estimates of 7% for both years. According to its projections, Amazon’s market share should increase from 39% in 2024 to 40% this year and 41% in 2026. “Expect AMZN’s scale, buyer/seller advantages, logistics leadership, and marketplace structure to enable the company to weather challenges better than most retailers,” analysts led by Brian Nowak said.
Also Read: How Many Amazon Shares to Buy Now to Reach $1 Million?
Cloud computing is another major growth engine for Amazon (AMZN). Amazon Web Services went from a platform serving internal needs to an industry-leading enterprise that generated $115 billion of annual run-rate revenue in the fourth quarter. 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. Combined with its continued e-commerce success, Amazon’s stock could resurge into a leader among the magnificent seven, as the economy heals from the tumultuous start to 2025.
AMZN is trading near the bottom of its 52-week range and below its 200-day simple moving average. CNN analysts are bullish on the stock, with almost 93% in a survey suggesting buying the stock. TipRanks gives AMZN stock a strong 8 out of 10, citing sales and bullish expert forecasts as promising factors.