Amazon.com, Inc. (AMZN) Stock Analysis

Amazon’s competitive edge is anchored in scale, technology, and customer-centricity. Its logistics network is unmatched: in 2024, Amazon delivered over 9 billion units to Prime members at record speeds, with more than 60% of U.S. metro areas now served by same-day delivery. This speed and reliability are difficult for traditional retailers like Walmart or Target to replicate at scale.

Amazon Web Services (AWS) is the global leader in cloud infrastructure, with 2024 revenue of $108 billion—nearly double that of Microsoft Azure. AWS benefits from the broadest service portfolio, deep enterprise relationships, and a robust partner ecosystem, though Azure is growing faster (Azure: 39% vs. AWS: 17.5% in Q2 2025).

Amazon’s marketplace model leverages over 2 million third-party sellers, who now account for 61% of units sold. This breadth of selection, combined with consistently low prices (ranked lowest among U.S. retailers by Profitero for eight consecutive years), drives high customer loyalty and repeat business.

The company’s culture of relentless innovation—evident in its rapid AI adoption, fulfillment automation, and new business launches (e.g., Project Kuiper, healthcare)—sustains its lead. However, Amazon faces rising regulatory scrutiny, labor cost pressures, and intensifying competition in cloud and retail. Its scale, data, and operational excellence remain formidable barriers to entry for rivals.