Amazon runs the largest online store in the United States and rents cloud computing to businesses and governments through Amazon Web Services. AWS pioneered renting computing power over the internet, and Amazon built its own delivery network to get orders to customers quickly. Shoppers buy from Amazon and from independent sellers on its store, and Prime members pay a subscription for fast free shipping, streaming video and music, and other perks. AWS rents out computing power, storage, databases, and AI tools so companies can run software without owning servers, and Amazon also makes Kindle e-readers and Echo speakers with the Alexa assistant. Jeff Bezos founded Amazon in 1994, and it is based in Seattle, Washington.
Company Size
10,001+
Company Stage
IPO
Headquarters
Seattle, Washington
Founded
1994
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Amazon (NASDAQ: AMZN) shares have fallen 10% since peaking two months ago, which one analyst sees as a buying chance. Concerns over rising AI spending and a rotation out of consumer tech stocks have weighed on the stock, which slightly lags the market in 2026. The business is growing fast. Net sales rose 20% last quarter, the strongest year-over-year jump since 2021. Amazon Web Services (AWS) revenue surged 37% in the second quarter on AI demand; AWS makes up a fifth of revenue but three-fifths of operating profit. North American e-commerce sales rose 16%, helped by Amazon's AI shopping assistant, Rufus. At less than 25 times next year's earnings, the article argues, Amazon's premium is available at a discount.
A $1,000 investment in Amazon (NASDAQ: AMZN) could grow to about $2,059 by October 7, 2031, according to a 24/7 Wall St. base-case model. That implies a modeled share price of $532.62, a 105.87% total return, or 15.54% annually. Shares trade at about $258.35, up 16.49% over the past year. On October 7, 2030, the base path puts the stock at $498.59, or $1,927.14 for a $1,000 stake. The case rests on Amazon Web Services (AWS), which grew 37% to $42 billion last quarter. Amazon's AI and custom chip businesses each top $25 billion annually, with most 2027 Trainium capacity reserved. The risk is spending. A $200 billion 2026 capex plan has pushed free cash flow to -$7.6 billion, so AI demand must arrive for the bull case to hold. Amazon pays no dividend, so all gains must come from the share price.
Amazon is testing whether shoppers will pay a premium for its new Alexa tablet, as leadership of the Alexa unit changes hands. Shares fell about 0.8% to $260.39 at 12:30 EST. The Alexa Tablet 12 Pro starts at $499.99, against $329.99 for the 11-inch model and $229.99 for the 8-inch version. Shipments begin October 14. Amazon confirmed to Reuters that Daniel Rausch will leave the unit next month. Aidan Marcuss will take over. The tablet's success depends on whether customers keep using Alexa and spend more across Amazon's services. Shares trade 3.7% above the $251.11 GF Value estimate.
The San Francisco company’s software makes it easier for developers to switch between different AI chips.
Michael Moritz, who spent about 38 years at Sequoia Capital backing Google, YouTube, PayPal, and Stripe, says most investors fail because they cannot do nothing. Speaking on The Investor's Podcast Network, he said they sell over scary headlines, round-number prices, or gains that feel too big, cutting short the compounding that builds wealth. He pointed to Amazon, which has traded at all-time highs on many days in its 30 years as a public company. Its stock closed at $262.43 on October 9, up 531.6% in a decade. Amazon's second-quarter revenue rose 19.6% to $200.61 billion. AWS revenue grew 37% to $42.23 billion, with a backlog of $496 billion, despite planned 2026 capital spending of about $200 billion.