Wells Fargo Lifts PT on Amazon.com (AMZN) Stock, Maintains Equal Weight
A customer entering an internet retail store, illustrating the convenience of online shopping.
In Q1 2025, Amazon.com, Inc. (NASDAQ:AMZN)'s net sales rose 9% to $155.7 billion as compared to $143.3 billion in Q1 2024, with AWS segment sales rising 17% YoY to $29.3 billion. The company has announced its plans to launch an AWS infrastructure Region in Chile by 2026 end. Amazon.com, Inc. (NASDAQ:AMZN) has also announced $4 billion investment through 2026, focused on expanding its rural delivery network to bring even faster delivery to customers in less densely populated areas throughout the US.
Lakehouse Capital, a Sydney-based investment manager, released its May 2025 investor letter. Here is what the fund said:
'Amazon.com, Inc. (NASDAQ:AMZN) reported a solid quarterly result with net sales up 9% year-on-year (10% in constant currency terms) to $155.7 billion and operating profit up 20% to $18.4 billion. The company's core e-commerce business remained resilient in the face of potential tariffs, with management noting they hadn't seen any material change in consumer buying behaviour as at the end of April. Amazon web services (AWS) grew 17% to $29.3 billion which was a slight deceleration from the 19% delivered last quarter. Whilst this seems disappointing at first blush, management reiterated that demand is very strong they are still capacity constrained. Artificial intelligence (AI) continues to be a key growth driver with AI workloads growing in excess of 100% year-on-year on AWS. Overall, it was a positive result, and we remain confident that the company is set to deliver many years of solid revenue growth and margin expansion.'
While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now
Disclosure: None. This article is originally published at Insider Monkey.
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