Amazon: Short-Term Pressure, Long-Term Opportunity

Constantine Theophylactou101 FollowersFollow5ShareSavePlay(11min)Comment(1)SummaryAmazon.com, Inc. is rated a Strong Buy due to robust FY25 results and an aggressive AI-driven investment strategy.AWS remains the primary growth engine, with 24% Q4 2025 growth, and management is targeting $600B annual revenue by 2036.Short-term earnings and FCF are depressed by capex, but ROIC stands at a solid 12.5%, above estimated WACC.Despite a premium valuation, I see long-term upside as investments in AI and cloud infrastructure scale. Yuriy T/iStock Editorial via Getty Images Amazon.com, Inc. (AMZN) has seen a small dip in its share price, recently prompting me to write this article. Amazon’s fundamentals are very strong: In FY25, Amazon's revenue grew by 12% to $716.9This article was written byConstantine Theophylactou101 FollowersFollowI am currently a finance student at York University, where I’m building a strong foundation in financial markets and investment strategies. My passion for it drives me to continuously learn and improve. Writing for Seeking Alpha allows me to share my journey, insights, and analyses with a broader audience. My motivation is to engage with the investing community, contribute valuable content, and refine my strategies as I grow as an investor. I’m excited to share my experiences and help others along the way.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.