Amazon Maintains Growth Momentum With Strong Execution and AI Expansion

Amazon (AMZN, Financials) is showing no signs of slowing down. Even with inflation, new tariffs, and shifting consumer trends, the company's mix of smart operations and strong demand for its cloud and AI services continues to drive steady growth.

Analysts say Amazon's focus on cost discipline and efficient inventory management has helped protect margins while keeping prices competitive. The company's global footprint from logistics to cloud data centers has also softened the impact of foreign exchange swings and trade-related headwinds.

Much of the optimism comes from Amazon Web Services, which remains the company's biggest growth engine. AWS is expanding its network of AI-driven data centers and cloud infrastructure, giving Amazon a key advantage as demand for computing power surges worldwide.

Even after an 11% rally in recent weeks, analysts say Amazon's valuation still leaves room for upside, especially as AI investments start adding more to profits in the next two years.