Amazon(US:AMZN) Yahoo Finance·2025-10-21 12:50Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) is currently trending in the stock market, with analysts suggesting that the stock has potential for growth despite recent underperformance in the AI sector and cloud business [1][2]. Group 1: Stock Performance - Amazon shares have declined by 3% year-to-date, underperforming major tech stocks due to tariff-related challenges and weakening consumer purchasing power impacting its e-commerce segment [3]. - The company's cloud business, AWS, experienced a growth rate of 17.5% in the second quarter, which is a slowdown compared to previous quarters, while competitors like Microsoft Azure and Google Cloud reported growth rates of 26% and 32%, respectively [3]. Group 2: AI Participation - Analysts have noted that Amazon has been lagging in AI participation compared to its peers, but recent investments in AI, such as its significant stake in Anthropic and a partnership with IBM, are positioning the company to engage more actively in the AI market [2][4]. - The shift in the cloud market towards AI-first platforms is affecting AWS, as companies are now favoring platforms that integrate generative AI models, which benefits competitors like Microsoft and Google [4]. Group 3: Investment Insights - Mairs & Power Balanced Fund initiated a new position in Amazon during the second quarter, capitalizing on stock weakness due to tariff news and market declines, indicating confidence in Amazon's ability to capture market share in both retail and cloud services [6].