While numerous technology giants face growth challenges, Amazon is staging a remarkable recovery powered by unexpected segments. The e-commerce behemoth’s cloud division, Amazon Web Services, has regained momentum and is capturing significant market share in the competitive artificial intelligence sector. However, the most surprising performance emerges from an entirely different business unit.
Advertising Emerges as Silent Performer
As market attention focuses on cloud services, Amazon’s advertising business has quietly transformed into a standout performer. Advertising revenue surged to $17.7 billion in the third quarter of 2025, representing a 23.5 percent increase that actually surpassed AWS’s growth rate. This highly profitable segment has now accelerated for three consecutive quarters.
The advertising success stems from multiple revenue streams. Beyond traditional product placements on Amazon’s marketplace, the company has successfully expanded into connected television and streaming advertising. This diversification strategy is establishing advertising as an increasingly crucial growth driver alongside Amazon’s cloud dominance.
Cloud Division Regains Momentum
Amazon Web Services demonstrated impressive performance in Q3 2025, with revenue reaching $33 billion and year-over-year growth of 20.2 percent. This represents the cloud unit’s strongest expansion since 2022. AWS not only commands 29 percent of the global cloud market but is also benefiting substantially from exploding demand for AI computing resources.
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More notably, this expansion is proving highly profitable. Despite substantial investments in new data centers and proprietary chip development including Trainium processors, AWS achieved an operating margin exceeding 34 percent. With a backlog of orders surpassing $200 billion, continued growth appears virtually assured for upcoming quarters.
Market Experts Express Strong Confidence
Wall Street has responded enthusiastically to these developments. The consensus rating for Amazon shares stands at “Strong Buy,” with the overwhelming majority of analysts recommending purchase. Price targets range between $280 and $294, indicating substantial upside potential.
Major investors are positioning themselves bullishly. Institutional players including 180 Wealth Advisors and AlTi Global have recently increased their holdings. With the current share price around €205—approximately 12 percent below its yearly peak—the stock may be forming a foundation for the next upward move. The question appears not if, but when Amazon will challenge its all-time high of €233 again.
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