Amazon stock (AMZN) opened Tuesday’s trading session at $225 and is up nearly 2.5% year-to-date. It faced multiple litmus tests in 2025 threatening its very existence in the charts. From Trump’s tariffs to trade wars and the market meltdown, it stood the test of time navigating troubled waters.
Despite the odds, its valuation holds up and remains a profit-generating equity for all time. AMZN remains the most sought-after equity in the broader US markets. In this article, we will break down why Amazon is the ultimate long-term growth stock that can relentlessly deliver profits.
Also Read: Crowdstrike Stock: Morgan Stanley Suggests CRWD Hit its Peak
Amazon Stock: The Long-Term Growth Potential For AMZN
- Amazon Web Services (AWS)
While Amazon dominates the e-commerce sector, it has spread its wings across various technological sectors boosting its stock prospects. The cloud computing Amazon Web Services (AWS) contributes around 70% of the company’s operating profits. AWS dominates 32% of the cloud computing services despite stiff competition from other tech giants like Microsoft and Google.
- E-commerce and Logistics
Amazon’s online retail business stood the test of time for over 30 years boosting its stock price for three decades. Even on an average day, it gains 200 million orders supplying goods from its extensive logistics network. It has reinvented its warehouse with AI-driven inventory systems to cut costs and boost efficiency. This makes logistics much faster to move from the warehouse to the consumer.
Also Read: Microsoft (MSFT): Why Analysts Raised Their July Stock Forecast
- Margins and Profits
Amazon aims to achieve a 20% profit margin by 2026, up from 8% in 2024, which could help AMZN stock soar. If a 20% profit margin is achieved, it would make its P/E around 10-12 and align with Alphabet’s valuation. A 20% profit in 2026 will not only ignite a rally but could lead to institutional funds taking entry positions. All these developments can push AMZN higher in value for the long term and deliver major profits to traders.