Amazon (AMZN) stocks are on the rise. Analysts currently trading at $203 say the stock could quickly surge to $300, with several reasons citing. The e-commerce company is one of the most powerful companies in the epic 7. Furthermore, on the worst day of the market this year, Amazon’s market capitalization exploded, surpassing $3 trillion.
Stocks are up from their 2025 lows, while AMZN shares are still down 7%. Experts suggest this is a good time to buy stocks before it explodes. One of Amazon’s biggest catalysts for growth is AWS performance. Amazon Web Services is the world’s largest cloud computing service, with a market share of approximately 30%. Revenue from the platform also rose year-on-year, with an increase of around $29.3 billion in the last quarter, an increase of 17%. However, AWS is the clear answer as to how AMZN can climb. What other factors will help Amazon stocks continue to grow?
Less tariff concerns
US tariffs hit the stock market hard in 2025, sending indexes and major US stocks. Amazon was one of many big technology/ecommerce companies that had their stocks plummeted. However, this was the first time since these tariff concerns were eased thanks to a temporary suspension of tariffs.
However, while the so-called “minimal” tariffs remained intact (although there are reductions), this is actually suitable for Amazon. This is because it affects Chinese competitors who sell directly to US customers such as Temu and Shein. The risk, of course, is that this is a temporary suspension and that the trade war is coming back in the future and again hurting AMZN stock.
Better margin
Furthermore, Amazon has significantly improved margins and profitability. Much of this is due to the use of AI. The company’s AI robots can help fulfillment centers and perform tasks such as lifting heavy objects, sorting, carrying packages, and more. Some robots also recognize damaged items and prevent shipping. AI is also useful for identifying items that Amazon’s e-commerce platforms often return.
The use of AI ultimately benefited Amazon’s margins. The company uses AI to improve ad creation and provide more relevant ads. An example of this is developing a generative AI tool that allows advertisers to create images generated by AI for sponsored ad campaigns. All this leads to the company seeing strong sales leverage. North American operating income rose 16% in the first quarter, with revenue rising just 8%.
Price range that is difficult to resist
Finally, with Amazon (AMZN) stocks being an epic seven-man member, the current low prices are an attractive investment option compared to forecasts. AMZN is still trading at one of the lowest ratings in its celebrity history despite rebounds over the past month. The company’s long-term outlook remains promising, allowing AMZN to return to 10-year heights next year.
