Amazon stock gains as Prime Day drives sales and cloud growth supports earnings

Amazon.com Inc. (ISIN US0231351067) stock has been supported by a mix of strong online retail demand, growing cloud-computing revenue, and improving profitability in recent quarters. According to company filings for fiscal 2025, Amazon generated net sales of more than $640 billion, reflecting continued expansion across e-commerce, Amazon Web Services (AWS), and advertising. Investors have focused particularly on the combination of Prime Day sales, AWS growth, and margin improvements as key drivers for the stock on Nasdaq.

Revenue above $640 billion and margin recovery

In Amazon's most recent full fiscal year, the company reported net sales of roughly $640 billion, up from about $575 billion in the prior year according to its annual report, representing an increase of around 11% year on year. This growth was driven by higher online store sales, third-party seller services, subscription services, advertising, and AWS cloud revenue. The company also reported operating income in the tens of billions of dollars, reversing a period of weaker profitability in earlier years when heavy investment and macro headwinds weighed on margins.

Operating margins have improved as Amazon has optimized its fulfillment network and reduced certain cost pressures compared with earlier periods. In the latest fiscal year, the company recorded operating margin in the mid-single-digit percentage range, compared with a significantly lower margin or near breakeven level in the previous year. The recovery in profitability has been a central theme for investors evaluating Amazon stock because it shows that the group can grow revenue while keeping expenses under control.

AWS cloud revenue surpasses $100 billion

Amazon Web Services has continued to play a crucial role in the company's earnings power. For the latest fiscal year, AWS generated more than $100 billion in net sales, up from around $90 billion in the prior year based on company disclosures, corresponding to high-single-digit to low-double-digit percentage growth. The segment maintains an operating margin well above the group average, which helps offset thinner margins in the retail business.

Compared with many peers in the cloud market, AWS remains a leading provider in terms of revenue scale and profitability. While competitors in infrastructure and platform services have also grown strongly, AWS's size and margin profile give Amazon a significant earnings anchor. For investors, the fact that AWS contributes a large portion of operating income despite representing a smaller share of total sales underscores the strategic importance of this business line in valuing Amazon stock.

Prime Day boosts retail and subscription business

Prime Day has become one of Amazon's largest sales events and continues to provide a meaningful boost to revenue in the period in which it is held. In a recent Prime Day event, Amazon stated that customers purchased hundreds of millions of items, with total sales value in the tens of billions of dollars across its marketplaces. This reflects both strong demand for discounted products and the group's ability to mobilize its logistics and fulfillment network over a concentrated period.

Prime subscription revenue also rises as the company uses the event to encourage new sign-ups and renewals. Subscription services, including Prime memberships, generated tens of billions of dollars of revenue in the latest fiscal year, up from the prior-year level. For investors, Prime Day's performance is relevant because it can affect quarterly revenue and segment metrics, especially in North America and international retail, as well as advertising sales associated with promotional campaigns.

Advertising and third-party seller services add high-margin revenue

Beyond core retail and AWS, Amazon has steadily grown a large advertising business, primarily through sponsored listings and display formats on its e-commerce platform. Advertising services produced revenue in the tens of billions of dollars in the latest fiscal year, an increase on the prior year that outpaced some traditional media channels. These services generally carry higher margins, contributing positively to overall profitability.

Third-party seller services, including commissions, fulfillment by Amazon (FBA) fees, and other marketplace-related charges, also make up a substantial share of sales. These services amounted to well over $100 billion in revenue in the latest year, increasing from the previous fiscal period as more merchants use Amazon's infrastructure to reach customers. For Amazon stock, the growth of these high-margin and service-oriented lines matters because it diversifies the earnings base beyond product sales.

Representative product line and customer reach

One representative product line that illustrates Amazon's breadth is its range of smart speakers and devices under the Alexa and Echo brands. These products rely on voice recognition, cloud connectivity, and integration with other services such as music streaming, smart-home control, and shopping. In recent years, Amazon has sold tens of millions of Echo devices, contributing to hardware revenue while deepening customer engagement with the ecosystem.

The company also offers a wide array of consumer electronics, books, household goods, groceries, and digital content. With hundreds of millions of active customer accounts globally, Amazon maintains significant reach in both retail and digital services. For investors looking at Amazon stock, these device and content offerings can be relevant because they support subscription, advertising, and cloud usage over time, reinforcing recurring revenue streams.

Amazon stock and market context

Amazon stock is listed on Nasdaq and is a constituent of major US indices such as the S&P 500 and the Nasdaq 100. The group has a market capitalization in the hundreds of billions of dollars, placing it among the largest listed companies globally. In recent periods, the stock price has shown sensitivity to quarterly earnings outcomes, changes in AWS growth rates, and broader moves in technology and consumer discretionary sectors.

Over the past year, Amazon shares have traded in a wide range, with the price moving significantly in response to updates on revenue growth and operating margin progression. The relationship between AWS growth and group earnings, as well as the trajectory of retail profitability, remains central for many investors when they assess Amazon stock's valuation against peers in both cloud services and e-commerce.