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Analyst Explains His Key Concerns for Amazon.com (AMZN) Stock

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Stocks to Watch in July as AI Enthusiasm Returns.

Mark Mahaney, Evercore ISI head of internet research, said in a recent program on CNBC that Amazon.com (AMZN) can offset tariff headwinds because of its market position, but the main concern for the company is about AWS growth. Mahaney compared AWS to Azure:

“The bigger concern really is, can AWS show this reacceleration that investors want to see? Microsoft Azure has done a wonderful job in the last 6 to 12 months showing that they’re riding the GenAI wave. AWS needs to show this too. I think they’ll be able to do that in the back half of the year. If I’m right on that, you get a rerating on Amazon.”

Meridian Hedged Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing, uniquely positioned to benefit from the secular growth in digital commerce and enterprise cloud adoption. Our investment in Amazon reflects its ability to compound growth through its dominant retail platform, AWS cloud infrastructure, and emerging high-margin businesses such as advertising and logistics. Amazon reported strong profitability in the quarter, achieving record operating margins and exceeding consensus estimates, driven by retail efficiencies and solid results from AWS. However, the stock declined following guidance that fell below expectations, citing foreign exchange headwinds and difficult year-over year comparisons. Broader macroeconomic concerns likely also contributed to the stock’s volatility. We remain confident in Amazon’s dominant market position and long-term potential.”

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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