Amazon (AMZN) stock is one to watch out of the Magnificent-7 and tech stocks in 2025, according to one expert. The stock is already one to watch according to Dow Jones analysts. According to Jason Brown from The Brown Report, two factors in particular could drive AMZN stock ahead in 2025.
The analyst suggests that Amazon’s AWS and e-commerce growth are the two key catalysts for AMZN stock performance in 2025. “AWS revenue grew 19% to $27.5 billion, and their advertising generated about $14.3 billion, a 19% increase,” Brown said back in November. “If you take AWS and their advertising services together, they’re just shy of $50 billion, which is nearly 50% of North American sales in total. They have another growth engine outside of the eCommerce platform. While dominating eCommerce, this additional growth engine bodes well for the stock.”
Amazon Stock Opening 2025 On the Right Foot?
Amazon’s Q4 earnings report is expected to be announced in early February. The company put together a great 2024 in terms of earnings each quarter. AWS was one of the biggest players in those earnings. North America is one of the biggest markets in the world for Amazon, and that market saw sales via Amazon and AWS climb in 2024. The same is expected for this year, meaning big things for the stock’s quest for $3T market cap.
Furthermore, Amazon Web Services is also making moves in artificial intelligence, according to recent investments. The company is beginning to make waves in the chip market, currently dominated by Nvidia. Back in December, AWS announced a $10B investment into data center expansion in Ohio, a move that can shape its future AI innovation. With the ongoing race for artificial intelligence supremacy, the Amazon (AMZN) stock target has gotten a boost, as it could be set to become an AI force in the coming year.
Also Read: Amazon, Apple, & Nvidia Lead Dow Jones Stocks to Watch in 2025
At press time, AMZN stock is trading at $223.68, up 6% in the last 30 days. The fifth-largest company by market cap, Amazon is looking to build on its $2.3 trillion mark. Although it is still a long way off, one analyst projected that the stock is set to exceed the $285 price point over the next year. That would indicate a more than 27% jump from its current position. Additionally, it would have the e-commerce juggernaut joining the illustrious $3T market cap club.