Amazon says increased pressure from rivals is draining some of the stock’s appeal

Amazon’s cloud-computing business has pushed its shares higher for almost two decades, but the company said increased pressure from rivals is draining some of the stock’s ￰0￱ is currently trading at $220.34, down 2.175% over the last 30 days but up 13.54% over the last 6 ￰1￱ stock is roughly 9% from its all-time high of $242 a ￰2￱ stock has also rebounded by 15% over the last six months, but remains the worst performer among its Mag 7 big tech ￰3￱ reports positive growth with cloud computing Just a friendly reminder that $AMZN is currently priced for 17% AWS ￰4￱ happens when the largest hyperscaler in the world does this? ￰5￱ — Sam Badawi (@samsolid57) September 28, 2025 The rise of artificial intelligence has led to a surge in demand for cloud hyperscalers, with Amazon Web Services (AWS) having the biggest market ￰6￱ has also incorporated AI into nearly every facet of its business, including the integration of generative AI into Alexa, Amazon One, and Amazon Bedrock, which enables developers to access top-tier machine learning models via a single ￰7￱ accounts for an estimated 30-33% of the global cloud infrastructure market in Q2 ￰8￱ division also contributed to the company’s $30.9 billion in revenue in Q2 2025, representing a 175% year-over-year increase.

AWS’s robust operating margin of 35.5% in Q2 2024 outpaces Amazon’s overall ￰9￱ noted that its growth rate was slightly below the 20% consensus, which signaled encroaching ￰10￱ firm is also investing over $100 billion in 2025, primarily to enhance its AI infrastructure with new foundation models, such as Amazon ￰11￱ Azure reported a 39% increase in revenue for its fiscal fourth quarter (ended June 2025). The tech firm also reported $75 billion in revenue during the same period, largely attributed to Microsoft’s AI ￰12￱ has also partnered with OpenAI to integrate AI capabilities into Azure’s offerings ￰13￱ reported a 20-24% market share in Q2 2025, and is already leveraging its cloud solutions to chip away at AWS’s ￰14￱ is also planning to invest over $30 billion in Q1 2026 to further strengthen its cloud infrastructure in response to the escalating demand for ￰15￱ Cloud also reported significant growth, with a 32% year-on-year surge in revenue to $13.6 billion in Q2 ￰16￱ company’s operating income increased by 142% to $2.18 billion in Q1 2025, despite growth being constrained at times by data center capacity.

Google’s parent company, Alphabet, is also investing close to $85 billion to boost data center ￰17￱ Cloud accounted for 11-13% of the market share in Q2 2025, with a focus on Tensor Processing Units (TPUs) for AI workloads and a strong emphasis on data analytics and open-source tools, which has some appeal to its ￰18￱ previously reported that Amazon reached a $2.5 billion settlement with the Federal Trade Commission (FTC) over Prime membership ￰19￱ initiative removed a significant regulatory overhang on the tech firm and led to a brief surge in its ￰20￱ Investment Research brokers appear to be bullish on AMZN’s outlook and AI ￰21￱ Rank shows that AMZN has an average brokerage recommendation (ABR) of 1.14 on a scale of 1 to 5 (Strong Buy to Strong Sell).

Tech companies bet big on computing resources Hyperscalers are increasing their capital expenditures due to the increase in demand for scalable, high-performance computing resources to train and deploy AI ￰22￱ companies like Nvidia and Intel are direct beneficiaries as the demand for specialized AI chips ￰23￱ announced on Monday that it has committed $1.9 billion to the Delivery Service Partner (DSP) ￰24￱ firm’s latest initiative brings its total investment in the DSP program to $16.7 ￰25￱ analyst Laura Martin also argued that Amazon’s Ad division is key to funding the firm’s future ￰26￱ research company found that the Ad business contributes over half of its total operating ￰27￱ called Amazon’s Ad business its crown jewel, saying it will be a more important source of growth than Amazon Web Services or e-commerce in the near ￰28￱ seen where it ￰29￱ in Cryptopolitan Research and reach crypto’s sharpest investors and builders.