We came across one bullish thesis at Amazon.com, Inc. in the LongYield substack. In this article, we’ll summarize the bulls’ thesis on AMZN. The stock of Amazon.com, Inc. it was trading at $210 on February 6. AMZN’s trailing and forward P/E were 29.3 and 25.5, respectively, according to Yahoo Finance.

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Amazon.com, Inc. (AMZN) remains the world’s largest e-commerce company and a major force in cloud computing, digital advertising and connected devices. Its business is organized across North America, International and Amazon Web Services (AWS), monetizing a broad ecosystem that includes the flagship online marketplace, Prime subscriptions, AWS cloud offerings, proprietary hardware, streaming via Prime Video and Twitch, and an advertising platform.

Management has prioritized investments in generative AI, proprietary chips like Trainium, robotics and a regionalized fulfillment network as central to long-term growth. In the third quarter of 2025, Amazon reported net sales of $180.2 billion, up 13% year over year, with operating income of $17.4 billion despite $4.3 billion in non-recurring charges; excluding these items, operating income would have reached $21.7 billion, reflecting the underlying strength of the business. North America generated $106.3 billion in revenue, while International reached $40.9 billion and AWS $33 billion, with AWS posting $11.4 billion in operating income supported by strong demand for AI workloads and a $200 billion backlog.

Amazon’s retail operations continue to benefit from Prime, third-party marketplace growth and logistics innovation, including expanded same-day or next-day delivery and grocery reach. Advertising revenue grew 22% to $17.7 billion, beating the broader market. Key risks include large capital expenditures for artificial intelligence and compliance, competitive pressures in cloud computing, regulatory scrutiny and macroeconomic uncertainty.

However, Amazon’s strategic investments in artificial intelligence, logistics and advertising, combined with operational efficiency gains and strong cash flow, position the company to sustain growth in its retail, cloud and advertising businesses. Successful execution of these initiatives could generate significant upside, while ongoing regulatory and competitive challenges remain important considerations for investors.

Previously, we covered a bullish thesis at Amazon.com, Inc. ( AMZN ) by FluentInQuality in May 2025, which highlighted AWS, Prime, logistics and advertising as key growth drivers. AMZN’s share price has been flat despite the strong expansion in its main businesses. LongYield shares a similar view, but emphasizes generative AI investments, Q3 2025 results and efficiency gains as catalysts for continued upside.