Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite‑sized pieces.
In this Markets in Focus, we take a closer look at Amazon, one of the biggest and most influential companies in the world.
Whether directly or indirectly, chances are you’ve used Amazon.com at some point. Let’s explore what this colossal platform is really about.
Watch a short video here: https://youtube.com/shorts/Cq1nDij8guY
What is Amazon
Amazon started in the mid-1990s as a small online bookstore run out of Jeff Bezos’s garage. Over time, it has grown into the quintessential global internet retailer.
During the COVID‑19 pandemic, Amazon saw a massive surge in demand as lockdowns pushed people to shop online, cementing its dominant position. Today, Amazon.com is a titan in e-commerce, with a wide global footprint. Its Prime program, combined with an efficient logistics and distribution network, is at the heart of its retail strength. The acquisition of Whole Foods Market also supports Amazon’s physical retail presence.
According to Q3 2025 results, online stores remain a critical part of Amazon’s business.
E-commerce and Cloud Computing
Beyond online retail, Amazon is a major force in cloud computing through Amazon Web Services (AWS).
- In Q3 2025, AWS generated $33.0 billion in net sales, up 20% year‑over‑year.
- AWS continues to be a profit engine: in Q3 2025, its operating income reached $11.4 billion.
- AWS holds about 29% of the global cloud infrastructure market as of Q3 2025.
Besides cloud, Amazon also monetizes through its Alexa-powered Echo devices, which are increasingly integrated with AI to drive sales of products and services. The company targets three key customer segments: consumers, third-party merchants, and developers.
Amazon Today – Key Trends & Challenges
- In Q3 2025, Amazon’s net sales rose 13% year-over-year to $180.2 billion.
- Operating income for the quarter was $17.4 billion, though this includes one-time charges: a $2.5 B legal settlement and $1.8 B in severance costs.
- Despite strong sales growth, Amazon faces cost pressures and margin compression in some areas, especially in its cloud business.
- Amazon’s AWS segment is central to its long-term strategy, especially as demand for AI infrastructure and cloud services accelerates.
- The company is investing heavily in AI, data centers, logistics, and fulfillment infrastructure to drive future growth.
- For Q4 2025, Amazon expects net sales between $206 billion and $213 billion, and operating income of $21–26 billion.
Trade Amazon at Change
You can trade Amazon through the Change app using up to 5× leverage.
Trading hours for Amazon: Monday to Friday, 13:30–20:00 (GMT).
Happy trading!
