Amazon (NASDAQ: AMZN) stock is making headlines again—and not just because of its e-commerce dominance.
Despite looming price hikes for Prime memberships, Wall Street analysts say now may be one of the best times in years to load up on Amazon shares.
Here’s why Amazon stock remains a great long term investment:
1. Explosive Growth in Cloud and Advertising
Amazon Web Services (AWS) continues to be a profit engine for the company. In Q1 2025, AWS delivered 17% year-over-year growth, helping Amazon post stronger-than-expected earnings.
But that’s not the only growth driver.
Amazon’s advertising business—an often overlooked segment—has quietly become a $50 billion revenue stream annually. In fact, ad revenue rose more than 24% in the most recent quarter, with Amazon now firmly behind only Google and Meta in U.S. digital ad market share.
These dual high-margin businesses allow Amazon to invest aggressively in AI, logistics, and streaming while still boosting profits.
2. Prime Price Hike = Bigger Margins
According to Fox Business, analysts are bracing for an imminent price hike to Amazon Prime. The current U.S. annual fee is $139, but analysts predict it could rise to $149 or higher in the next 12 months.
While this may sting for consumers, investors should see it differently:
- Improved profit margins: A $10 increase from the current 200+ million global members could generate billions in incremental annual revenue.
- Customer stickiness: Prime users spend significantly more on Amazon, and churn remains low despite past price hikes.
- Streaming, groceries, and delivery benefits: Analysts argue Prime’s bundled perks remain a solid value, even at a higher price.
This revenue boost will likely be channeled into more R&D, faster delivery networks, and exclusive streaming content—deepening Amazon’s moat.
3. A Recession-Resilient Retail Beast
While some retailers are tightening belts in 2025, Amazon continues to show resilience.
Its vast product selection, one-day shipping, and grocery expansion via Whole Foods and Amazon Fresh give it a distinct advantage as inflation-weary consumers look for convenience and value.
With retail demand rebounding and Amazon executing on automation and supply chain innovation, Wall Street is increasingly confident in Amazon’s ability to thrive in any economic cycle.
Should You Buy Amazon Stock Today?
The bottom line: Amazon is no longer just an e-commerce company. With growing profits from AWS and advertising, an upcoming Prime price hike likely to benefit margins, and recession-resistant retail operations, the company is positioned for long-term success.
Many analysts say that even with a 50% run-up over the past year, Amazon stock still has room to grow. If you’re thinking about buying in, this could be the dip before another breakout.
Amazon Stock Snapshot
As of July 1, 2025 @ 9:20 AM ET
- Price: $189.62
- YTD Performance: +32%
- Market Cap: $1.9 Trillion
- P/E Ratio: 61.3
- 52-Week Range: $115.47 – $192.63
Key Takeaways for Investors
- 📈 AWS + Ads = Cash Machine
- 💵 Prime Price Hike = Revenue Windfall
- 🛒 Retail Growth Remains Strong
- 🧠 AI + Logistics Give Long-Term Edge
Amazon’s diversified profit streams and dominant infrastructure give it a competitive edge even as rivals struggle to scale.
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