Hey lovely ladies, let’s dive into the world of Amazon and see if it’s a good time to grab some of those shiny stocks for your portfolio! 🌟
We’re in the thick of earnings season, and all eyes are on tech giants like Amazon, especially as they ride the AI wave. Amazon’s got a big date set for July 31 when they’ll unveil their second-quarter results. While e-commerce is still their main gig, the buzz is all about Amazon Web Services (AWS) and its AI prowess.
So, should you snag some Amazon stock before this big reveal? Let’s explore!
Why AWS is the Star of the Show
AWS is Amazon’s cloud computing superstar, basically the Beyoncé of the cloud world. It helps businesses with everything from web hosting to complex software development. Now, AWS is stepping into the AI spotlight, focusing on three key areas: hardware, large language models (LLMs), and software. It’s like they’re building the ultimate AI toolkit!
Imagine AWS as a new-age architect — they’re whipping up data centers filled with cutting-edge GPUs from champs like Nvidia and even cooking up their own chips to cut AI training costs. Plus, their Bedrock platform serves up a buffet of LLMs, including their in-house Nova models and other biggies like Meta. This makes AWS a playground for developers looking to create AI magic.
In the first quarter of 2025, AWS raked in a record $29.3 billion, a 17% leap from last year, although the pace slowed a bit. But don’t fret! AWS is in such high demand that they can’t keep up. Amazon’s CEO Andy Jassy hinted that things should smooth out soon, so we might see AWS’s growth speed up again by July 31.
Amazon’s Track Record of Surprises
Amazon is like the overachiever that keeps exceeding everyone’s expectations. Last year, they pulled in a jaw-dropping $638 billion in revenue and are on track for nearly $700 billion in 2025. AWS is the profit powerhouse, making up 62% of Amazon’s operating income despite only being 19% of its revenue. Talk about efficiency goals!
Their e-commerce side is more about slim margins and happy customers, focusing on cost-cutting and speed. They even revamped their logistics into eight regions, cutting delivery times and costs. Plus, they’re using AI in fulfillment centers to spot defective products before they ship, saving on returns and refunds. A smart move, right?
Amazon’s earnings per share (EPS) soared by 90% in 2024, and they’ve been beating Wall Street’s guesses by an average of 23%. In the first quarter of 2025, their EPS was up 62% from last year, smashing analyst predictions again. It’s like they’re on a winning streak!
The Big Question: To Buy or Not to Buy?
Buying into Amazon isn’t just about the now; it’s about the long game. With a current P/E ratio of 36.8, it’s pricier than the Nasdaq-100 average. So, if you’re hoping for quick gains, you might want to hold your horses.
But here’s the kicker: Amazon’s future earnings potential is looking fab! Analysts predict a $7.29 EPS by 2026, which could mean a forward P/E ratio of around 31. That’s room for some serious upside, especially given Amazon’s knack for beating forecasts.
For those ready to play the long game, think five years or more, buying Amazon stock now could be a savvy move. It gives Amazon the runway to work its AI magic and build value. So, if you’re in it for the long haul, grabbing some Amazon stock before July 31 could be a winning strategy.
Ladies, if this has you buzzing with investment ideas, DM me or join my mailing list for more insights on how to make your money work stylishly for you! 💖📈
