It was certainly a tough year for the US stock market. Amidst an increasing number of geopolitical tensions and economic frailties, many megacap stocks have been declining, and the outlook is increasingly concerned. However, Amazon (AMZN) has seen an impressive growth trajectory, reaching Amazon Web Services (AWS) business revenues of $100 billion, with the AI sector growing “three digits”.
The update was provided by Andy Jassy, CEO of the company who recently shared a 2024 shareholder letter. But the biggest question now is what this means for the company’s stock this year. Can an impressive dataset set the right course for the company? Or will you continue to suffer amid the macroeconomic headwinds?
Amazon AWS and AI get massive growth updates from CEOs: What does that mean for stocks?
2025 is not kind to any of the 7 epic stocks and is not exempt from the challenges. Amazon (AMZN) has since been caught up in the challenges facing the US stock market. The stock rebounded more than 1% on Friday, but they are still down more than 16% since the start of the year, trading at the $183 level.
But that doesn’t take away some of the more impressive aspects of the business. According to Amazon CEO Andy Jassy, AWS has reached $100 billion in revenue in its “three-digit” AI business. In fact, the data shows that the company is strong in its most promising sector.
“Generated AI reinvents almost every customer experience you know and enables a completely new customer experience about what we just fantasized about,” writes Jassy. Furthermore, its AI efforts will only strengthen the AWS cloud computing business. That consolidation should only make you stronger in the market lead.
“The key primitive (or building blocks) for AI development is the company’s AI push, Jassy said. Additionally, he said the Trainium2 chips “provides 30-40% price performance over current GPU-powered computing instances currently available.”
If we can continue to grow in these two sectors, things should look even brighter for e-commerce juggernauts. Certainly, if the market recovers, technology should return to winning ways. Furthermore, there may not be any stronger investments in that industry than Amazon.
