Where Will Amazon Stock Trade in One Year — And What Will Drive AMZN?

Core Viewpoint - The market's enthusiasm for artificial intelligence (AI) has significantly influenced the technology sector in 2025, with notable investments and a strong performance from the Nasdaq-100 Technology Index, which has risen approximately 18% year-to-date [1] Company Performance - Amazon's stock has only increased by about 0.5% year-to-date, underperforming compared to other major technology companies, with the exception of Tesla [2] - Despite the lackluster stock performance, Wall Street analysts remain optimistic about Amazon's future, projecting substantial upside over the next 12 months [3] Earnings and Growth Catalysts - Amazon has consistently exceeded earnings expectations, including a notable 23.4% earnings beat in its most recent quarter, indicating strong operational performance [4] - Key growth drivers for Amazon include advancements in cloud computing, improved profitability in retail operations, and increasing demand for AI-driven services, alongside a robust advertising business [5][6] Cloud Computing Focus - Amazon Web Services (AWS) is central to Amazon's growth strategy, with a significant backlog of $200 billion as of the third quarter, which does not account for new deals closed in October that surpass the total value of third-quarter agreements [7]