Overview

• Amazon stock remains a top contender for long-term investors due to its consistent revenue growth and dominance in multiple sectors

• The Amazon stock price has shown steady performance in 2025, despite broader tech market volatility.

• Analysts remain cautiously optimistic, citing AWS, advertising, and logistics as Amazon’s strongest growth pillars.

Whenever long-standing tech giants are discussed, Amazon’s stock is invariably part of the conversation. Over the past two decades, Amazon has built a vast empire spanning e-commerce, cloud computing, digital advertising, logistics, and even healthcare.

Amid changing economic conditions, fluctuating interest rates, and ongoing global uncertainty, many investors in 2025 are once again asking: Is Amazon still a good stock to buy?

Amazon in 2025: Where Things Stand

In a year marked by turbulence in the macroeconomic scene and a general recovery of the tech sector, Amazon's shares rose about 18%, surpassing several other highs from FAANG members during this period. 

AWS has continued to advance, generating more than 60 per cent of Amazon's operating income, and the retail segment now appears to be going through a turnaround with cost-cutting measures and international expansion. Ad revenues were also up 12 per cent in the last quarter, and analysts deemed it still an underappreciated alternative growth engine in the market.

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Why Amazon Still Appeals to Investors

Several factors continue to keep the stock of Amazon attractive:

• Multiple revenue streams: Amazon does not rely on a particular segment. Rather, it draws revenues from diverse sectors such as AWS, ad platform, Prime memberships, and logistics.

• Strong brand loyalty: With more than 200 million Prime subscribers worldwide in 2025, Prime acts as a steady stream of cash flow.

• Aggressive innovations: Fostering AI, automation, and drone deliveries are a few ways Amazon is setting out to safeguard its future operations.

This diversification is what shields Amazon stock from extreme sector-based volatility, a characteristic that investors value for long-term stock investment.

What Analysts are Saying

Market analysts remain cautiously bullish about Amazon stock. An April 2025 survey by Bloomberg reveals that 78% consider it a 'Buy' or 'Strong Buy' rating, owing to the firm's free cash flow to the business and improving margin situations in AWS and advertising. 

However, keep an eye on operating expenses. Investments in automation and cloud infrastructure alone may weigh on near-term earnings pressure, let alone if consumer demand softens in some regions.

Is the Current Price a Good Entry Point?

The Amazon stock price is about $150 (post-split price) in July 2025, with a FY1 PE ratio of 23. While this may not be the pandemic-era lows, it is attractive considering the expected 12-15% CAGR over the next three years. 

Investing in Amazon at this price may provide investors with an opportunity to dollar-cost average to hedge short-term market price fluctuations.

Risks to Consider

Some of the risks that can be foreseen in owning stocks of Amazon are as follows:

• Regulatory scrutiny: Antitrust probes, especially in the EU and India, may slow expansion in key markets.

• Competition is intensifying: Companies like Shopify, Walmart, and others are making inroads and strengthening their positions in e-commerce and logistics.

• Margin pressure: Continued investments into new initiatives could defer earnings in the near term.

However, for someone who has seen Amazon weather several storms, this provides some comfort.

Also Read: Is it a Good Time to Buy or Sell Apple Stock Now?

Final Word

Is Amazon a good stock to buy in 2025? The definite answer leans towards yes. Investors can seek growth far into the future, diversification, and innovation. As it expands into many industries, this company has managed to maintain steady revenue growth. 

Although these differences exist, factors such as stocks, timing, and other personal considerations enter the decision. An investor will certainly have to wonder how Amazon fits in their greater portfolio, especially in this time of rapid change in the tech sector and tech stocks 2025.