Amazon is executing a coordinated strategic offensive across its core business segments. Institutional investors are taking note, positioning themselves on the buy side despite the stock’s performance year-to-date, which shows a decline of approximately 7.9%. In the second quarter of 2025, Empowered Funds increased its stake by over 60%. Similarly, German asset manager DJE Kapital raised its holding by 12.3%, elevating Amazon to its largest single portfolio position.
Cloud Division Fuels Analyst Confidence
The company’s recent AWS re:Invent conference, which concluded last Friday, has provided significant momentum. Market observers are focusing on Amazon Web Services (AWS), the critical profit engine for the conglomerate. Goldman Sachs reaffirmed its Buy rating, attaching a price target of $290.
This optimism is driven by the launch of new generative AI models and custom server technologies. These innovations are designed to enhance customer performance while simultaneously reducing operational costs. TD Cowen analyst John Blackledge forecasts that AWS revenue growth will accelerate, reaching a volume of $128.1 billion in 2025.
E-Commerce Counterattack in European Markets
Parallel to its technology push, Amazon is making an aggressive move in its foundational e-commerce business. To counter the rising threat from low-cost online retailers, the company will implement substantial fee reductions for sellers across Europe, effective December 15, 2025. The strategic focus is on the price-sensitive fashion category.
Should investors sell immediately? Or is it worth buying Amazon?
The revised fee structure is detailed below:
* Budget Apparel: For items priced below €15/£15, the referral fee will drop from 8% to 5%.
* Mid-Range Goods: For products costing between €15/£15 and €20/£20, fees will be reduced by 5 percentage points.
This tactical adjustment aims to expand the platform’s assortment of affordable clothing and actively defend its market share.
Broad Market Sentiment Remains Favorable
The overarching market consensus mirrors the bullish institutional activity. The collective rating from more than 60 analysts stands at “Moderate Buy,” with an average price target hovering around $296. Following its latest flagship event, analysts interpret this strategic recalibration as a clear demonstration of corporate strength.
By combining cutting-edge technological advancement in cloud computing with a more assertive pricing strategy in retail, Amazon is strategically positioning itself to lock in long-term competitive advantages across both fronts.
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