AMZN Stock Set For A Major Upswing?

Core Insights - Amazon stock (NASDAQ: AMZN) has a history of delivering impressive returns, achieving over 30% gains in less than two months on 13 occasions, particularly in 2010 and 2020, indicating potential for future growth [1] Group 1: Growth Drivers - Amazon Web Services (AWS) is a major growth engine, with Q2'25 sales reaching $30.9 billion, a 17.5% year-over-year increase, and potential for operating income boost tied to AI-driven demand [4] - The advertising segment is expanding rapidly, with Q2'25 advertisement revenue at $15.7 billion, marking a 22% year-over-year increase, contributing significantly to overall profitability [4] - International operations have shown a remarkable turnaround, with Q2'25 International Operating Income at $1.5 billion, a 448% increase, expected to enhance overall profitability [4] Group 2: Financial Performance - The High Quality Portfolio has outperformed its benchmark, achieving returns exceeding 105% since inception, indicating a less volatile investment option compared to individual stocks like AMZN [2] - Financial fundamentals are solid, with key metrics indicating strong performance relative to the S&P median [3] Group 3: Historical Performance and Risks - Amazon has experienced significant declines during market downturns, including a nearly 94% drop during the Dot-Com Bubble and a 65% decline during the Global Financial Crisis, highlighting potential risks [5] - Stocks can decline even in favorable market conditions due to earnings announcements and business updates, necessitating comprehensive analysis before investing [6]