Portfolio: Zacks Bull Tilt

Amazon presents a compelling investment opportunity as the dominant e-commerce and cloud computing leader that successfully reaccelerated growth across key segments in Q3 2025, with Amazon Web Services (AWS) achieving its strongest growth rate in nearly three years at +20% YoY to $33 billion revenue. CEO Andy Jassy emphasized this milestone, stating “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY, our largest growth rate in 11 quarters”, while noting the significance of achieving “20% year-over-year growth on a $132 billion annualized run rate”. The company delivered exceptional Q3 results with $1.95 EPS (beating estimates by 25%) on $180.2 billion revenue (up 12% year-over-year), driven by AWS’s resurgence in the AI infrastructure race where Amazon has invested approximately $100 billion in data center build-outs and launched transformative initiatives like the $11 billion Project Rainier AI cluster featuring 500,000 Trainium2 chips and securing Anthropic’s commitment to utilize 1 million custom chips. AWS’s recovery trajectory positions Amazon to capitalize on the AI boom while maintaining its 30% market share in the $400+ billion cloud infrastructure market. Trading at just 18x EV/EBITDA, which is near the lowest multiple the stock has ever traded during the past 20 years, Amazon stock currently offers great value with balanced exposure to both defensive e-commerce cash flows and high-growth cloud infrastructure expansion, with the stock surging 11% following earnings as investors recognized the company’s renewed momentum in capturing AI-driven enterprise demand.