Amazon(US:AMZN) Yahoo Finance·2025-10-30 15:12Core Viewpoint - Amazon.com Inc (NASDAQ:AMZN) is highlighted as a strong investment opportunity due to its attractive valuation and potential for growth in the cloud sector, despite facing challenges in its e-commerce business [1][3]. Valuation and Market Position - The stock is currently trading at 25 times forward earnings, one of its lowest valuations ever, indicating a potential for upside [2]. - The company has increased its position in Amazon from 4.5% to 6%, suggesting confidence in its future performance [2]. Cloud Business Performance - AWS experienced a year-over-year revenue growth of 17.5% in the second quarter, which is a deceleration compared to previous quarters, while competitors like Microsoft Azure and Google Cloud reported growth rates of 26% and 32%, respectively [3]. - The shift in the cloud market towards AI-first platforms is impacting AWS, as companies are now favoring solutions that integrate generative models [3]. Investment Strategies - 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 [4]. - The fund believes Amazon is well-positioned to capture market share in retail and grow its cloud business [4].