Is Amazon Stock a Buy, Sell, or Hold in 2025?

The recent sell-off has left few stocks unscathed, including "Magnificent Seven" stocks such as Amazon (NASDAQ: AMZN). As of early April, the stock is down 20% since the beginning of the year and sells at nearly 30% below the all-time high it achieved in early February.These early results could have implications for the stock's performance in 2025. Let's take a closer look at Amazon's businesses and financials to see if the stock could still be a winner this year. It may surprise some investors to learn that the online sales enterprise is likely not a compelling reason to buy Amazon stock. Although its e-commerce operation is the company's largest revenue generator, retailing is a low-margin business and likely serves as a loss leader that supports higher-margin software businesses.Continue reading

Apr 9, 2025 - 23:49

The recent sell-off has left few stocks unscathed, including "Magnificent Seven" stocks such as Amazon (NASDAQ: AMZN). As of early April, the stock is down 20% since the beginning of the year and sells at nearly 30% below the all-time high it achieved in early February.

These early results could have implications for the stock's performance in 2025. Let's take a closer look at Amazon's businesses and financials to see if the stock could still be a winner this year.

It may surprise some investors to learn that the online sales enterprise is likely not a compelling reason to buy Amazon stock. Although its e-commerce operation is the company's largest revenue generator, retailing is a low-margin business and likely serves as a loss leader that supports higher-margin software businesses.