Amazon Stock Prediction 2025: Why I’m Betting Big on AMZN Right Now

I've been watching Amazon (NASDAQ: AMZN) closely this year. With all the volatility in tech stocks and uncertainty in the market, I wanted to see if it still makes sense to invest. After running the numbers, looking at analyst expectations, and considering the risks, I’m comfortable opening a position in Amazon. It still has strong growth potential, and I think the market isn’t fully appreciating what’s coming next.

If you're interested in undervalued stocks beyond just Amazon, I've also written about undervalued healthcare stocks like RPRX and why some hidden gems might be worth exploring.

Is Amazon Still a Good Investment in 2025?

Amazon’s business is still growing at a solid pace. Over the past three years, revenue has grown 11% annually, climbing to $637 billion in 2024. Earnings per share (EPS) has seen 14% yearly growth, and free cash flow (FCF) is up 61% per year. That’s not what you expect from a company losing steam.

Beyond that, Amazon’s market position is as strong as ever. It holds a 37.8% market share in U.S. e-commerce, with Walmart at 6.3% and eBay even lower. On the cloud side, AWS still dominates with 31% market share, and it continues to be the most profitable segment of Amazon’s business.

If you're into monthly income from dividends, you might want to check out my guide on monthly dividend stocks for passive income for a more cash-flow-driven investing strategy.

For those looking to actively monitor their portfolios, I highly recommend using TradingView for real-time stock analysis and M1 Finance for automated investing.

Is Amazon a High-Risk Stock?

There are risks, no doubt. The tech sector has taken a hit this year, with major companies losing a combined $1.5 trillion in market value. Amazon’s stock has been part of that decline. Plus, there’s the uncertainty around tariffs—proposed 200% import tariffs could have a ripple effect on consumer spending and global trade.

Another thing to watch is AWS growth. It’s still growing at 19% year-over-year, but some analysts think Microsoft Azure and Google Cloud are catching up. If AWS growth slows more than expected, that could change Amazon’s overall trajectory.

For investors looking at diversified tech exposure, I also wrote about NVIDIA's valuation and whether it’s still a good buy despite its high price.

If you're interested in investing with zero commission, check out Robinhood or Webull for a seamless trading experience.

Is AMZN Overvalued?

Honestly, I don’t think so.

Amazon’s P/E ratio is 35.06, which is low compared to its historical range. Its PEG ratio is 0.39, meaning the stock might actually be undervalued relative to growth. The P/S ratio sits at 3.18, which is reasonable for a company of this scale.

Analysts seem to agree—most price targets range from $186 (low) to $306 (high), with an average of $260.65. That suggests a 31% upside from current levels.

If you're curious about how to evaluate stocks beyond P/E ratios, check out my deep dive on how the P/E ratio works and why it isn’t always the best metric on its own.

Is Amazon a Bullish Stock?

I’d say yes.

Amazon is investing over $100 billion in 2025, mainly in AI and cloud computing, to make sure AWS stays ahead. They’ve also automated a huge chunk of their fulfillment centers, with 750,000+ robots now handling orders. That’s already cut costs by 25%, which should save them billions in the long run.

Then there’s Project Kuiper, Amazon’s move into satellite broadband. They’re launching 3,236 satellites, which, if it works, could be another AWS-level revenue stream.

For those looking at AI-driven stocks, I’ve also covered Broadcom (AVGO) as a potential 10x AI stock that could ride the AI boom alongside Amazon.

For managing investments and tracking net worth, I highly recommend Personal Capital—it’s a great tool for seeing the big picture of your finances.

What I’m Doing

I’m buying Amazon stock because I think the market is underestimating its long-term potential. The numbers are strong, the valuation is reasonable, and Amazon is making moves that will matter in the next few years.

I don’t expect it to be smooth sailing. The market is choppy, and tech stocks aren’t in favor right now. But I’m not looking for a short-term trade—I want something that will be worth a lot more in 2-3 years than it is today.

What I’m Watching Before I Buy More

1. AWS growth rate – If it slows more than expected, I’ll rethink my position.
2. Project Kuiper execution – It’s ambitious, but is it realistic?
3. Insider buying trends – If Amazon execs start selling their own shares, that’s a red flag.

For now, I like the setup, and I’m adding AMZN to my portfolio. 🚀

Original Tweet 👉