Amazon Is One of My Favorite Stocks to Evaluate

Core Insights - Wall Street shows strong optimism for Amazon, with 59 out of 73 analysts giving "Buy" ratings, indicating confidence in the company's future performance [1] AWS Growth Trends - Amazon Web Services (AWS) is experiencing accelerated growth, with Q3 fiscal 2025 revenues increasing by 20.2% year-over-year to $33 billion, achieving an annualized run rate of $132 billion and a backlog of $200 billion [2] - The backlog has significantly increased in early November 2025, surpassing the previous quarter's total, with AWS adding 3.8 gigawatts of data center capacity in the last year and plans to double this by 2027, showcasing strong revenue visibility [3] AI Services and Market Position - AWS's AI services, including SageMaker and Bedrock, are contributing to rapid growth, with Bedrock offering a variety of foundational models and high performance for AI workloads; the proprietary AI chip Trainium 2 has become a multibillion-dollar business [4] - The global agentic AI market is projected to grow from $13.8 billion in 2025 to $140.8 billion by 2032, with Amazon investing heavily to establish AWS as a leader in this space through tools like Strands and Agentcore [5] Advertising and E-commerce Momentum - The advertising business is gaining momentum, with revenues growing 22% year-over-year to $17.7 billion in Q3, driven by a comprehensive advertising portfolio and partnerships with streaming services [8] - In e-commerce, a focus on same-day delivery for perishable goods and increased penetration in rural markets may provide a competitive advantage in upcoming quarters [8]