Amazon (AMZN) stock is down more than 14% this year despite one of its business units generating more revenue than nearly every company in the S&P 500.
The disconnect underscores how much of the burden e-commerce giants are shouldering as uncertainty around Trump’s trade policies hangs over the market.
Amazon Web Services (AWS) — the company’s cloud computing division — generated $112 billion in revenue over the past 12 months. That figure is “higher than the revenue of 468 companies in the S&P 500,” according to market analyst Charlie Bilello.
Incredible: Amazon's AWS revenue over the last 12 months ($112 billion) was higher than the revenue of 468 companies in the S&P 500. $AMZNhttps://t.co/rQuXrxVpWs pic.twitter.com/HqFhsgfziO
undefined Charlie Bilello (@charliebilello) May 2, 2025
Yet AMZN stock is down more than 23% from its all-time high in February and has underperformed the S&P 500 and tech-heavy Nasdaq index so far this year.
“While some of this decline is tied to the broader market’s downturn, the drop seems increasingly irrational given the company’s record-breaking earnings and continued long-term growth,” wrote analyst Sam Quirke.
Though still widely seen as an online retail giant, Amazon is now the world’s largest cloud infrastructure provider, outpacing Microsoft, Google, Alibaba, Oracle, Salesforce, and IBM.
As of the end of last year, AWS held nearly one-third of the global cloud infrastructure market. That’s nine points ahead of Microsoft Azure and more than double Google Cloud’s share.
Analysts at Loop Capital and Canaccord Genuity expect AMZN shares to eventually catch up with fundamentals. Loop Capital has set a $285 price target for the stock, implying a 54% upside from today’s price.
Tariffs weigh on Amazon outlook
Amazon beat earnings and revenue expectations in the first quarter, but its stock still fell as investors zeroed in on a weaker-than-expected profit forecast and rising costs tie to tariffs.
On its earnings call last week, the company projected $15.3 billion in Q2 operating profit, roughly $2.6 billion below Wall Street expectations.
CEO Andy Jassy emphasized Amazon’s commitment to keeping prices low for consumers, even as tariffs complicate the supply chain.
“Amazon is not uniquely susceptible to tariffs,” Jassy said. “Retailers who aren’t buying directly from China are typically buying from companies who themselves are buying from China.”
According to an April Wall Street Journal report, Amazon has canceled some merchandise orders from China to rein in costs. Meanwhile, the Financial Times reported that the company is now pressuring suppliers to lower prices in response to tariff shocks.
Still, it’s unclear how long the company can cushion the blow from tariffs. Various estimates suggest that 60% to 80% of all products sold on Amazon are sourced from China, including high-demand categories like electronics, clothing, and toy
Your email address will not be published. Required fields are markedmarked