Amazon Stock Declines Despite AWS Revenue Surge

Amazon's stock has seen a notable decline in 2025, underperforming major indices despite strong performances from its cloud division, Amazon Web Services (AWS), which continues to outpace competitors and contribute significantly to the company's revenue. Analysts highlight AWS as a key driver of Amazon's long-term growth potential, with its market dominance offering a compelling reason for optimism about the stock's future recovery. Although Amazon beat earnings and revenue expectations recently, investor concerns remain due to weaker profit forecasts, rising costs linked to tariffs, and broader market uncertainty. Some analysts and investors, including those at Loop Capital, Canaccord Genuity, and Piper Sandler, maintain bullish outlooks on Amazon, suggesting the stock is fundamentally sound and poised for future gains. Earnings estimate revisions and the company's continued investment in AI and advertising are also cited as positive factors, though near-term volatility persists. Overall, Amazon is viewed as a strong long-term bet, especially given its leadership in cloud computing and the ongoing AI boom.