Amazon Stock Price (NASDAQ:AMZN) at $230.26 as AWS and Ads Growth Outpace Tariff Risks

NASDAQ:AMZN Trades at $230.26 With Market Cap Above $2.45 Trillion

Amazon.com Inc. (NASDAQ:AMZN) is trading at $230.26, down 1.62% intraday, while maintaining a massive $2.456 trillion market capitalization. Over the past year, the stock has surged 23.2%, outpacing the S&P 500’s 16.9% return, though its year-to-date performance is softer at +4.9% compared with the index at +12%. The stock sits in a 52-week range of $161.38 to $242.52, showing strong recovery momentum after the tariff-driven selloff earlier this year. See real-time chart here.

Revenue Growth Reaches $670 Billion as Net Income Hits $70.6 Billion

Amazon’s trailing twelve-month revenue has expanded to $670.04 billion, marking 13.3% YoY growth, while net income climbed to $70.62 billion with diluted EPS of $6.55. Profit margin now sits at 10.54%, and return on equity has surged to 24.8%, signaling that efficiency gains from automation, logistics streamlining, and advertising monetization are translating into stronger bottom-line leverage. Gross profit is running at $332.38 billion, with EBITDA of $133.83 billion, underscoring how Amazon continues to scale across multiple verticals at high velocity.

AWS Grows 17.5% But Faces Power Capacity Constraints

Amazon Web Services remains the largest profit driver, with revenue growth of 17.5% YoY, maintaining a run-rate above $123 billion annually. However, CEO Andy Jassy acknowledged that demand is exceeding available capacity, with power contracts becoming the bottleneck for hyperscale expansion. Management has already signed a 1.9 GW nuclear power deal with Talen Energy, but Jassy stated it could take “several quarters” before capacity aligns with customer demand. This creates a temporary growth cap but also sets up AWS for accelerated revenue capture once infrastructure ramps.

E-commerce and Prime Sales Accelerate Into Q3 Guidance

Amazon’s Q3 revenue guidance is set between $174–$179.5 billion, a midpoint of $176.75 billion, or +11% YoY. Operating income guidance is wide at $15.5–$20.5 billion, with downside risk of –10.9% YoY but upside potential of +17.8% YoY. Truist raised its price target to $270 after card data indicated Amazon’s North American revenue is running about $1 billion ahead of consensus. Amazon also announced a two-day Prime October sales event, designed to kick off the holiday season early and absorb potential tariff or labor disruptions before year-end.

Tariff Risks Create a Double-Edged Outlook for Margins

The August extension of the reciprocal tariff pause on Chinese imports held rates at 10%, avoiding the 30% tariff proposed earlier this year. This relief boosts Q3 margins but creates significant Q4 risk if no deal is reached before November 10, when tariffs could snap back as high as 55% effective rate on certain categories. Roughly 25% of Amazon’s 1P COGS originates in China, while over 50% of its top third-party sellers are based there, amplifying exposure. A favorable U.S.–China trade deal would lift a major overhang, but a snapback scenario could contract holiday profitability, particularly in consumer electronics and apparel.

Labor Costs Rise by $1 Billion in U.S. and U.K.

Amazon recently announced over $1 billion in wage hikes for fulfillment and transportation employees in the U.S. and U.K. U.S. frontline pay will exceed $23 per hour, lifting annual wages by about $1,600 per worker on average, while U.K. minimum starting pay rises 5.9% to £14.30/hour. The company has 1.5 million global employees, making labor inflation a heavy drag on margins. Amazon also lowered entry-level U.S. healthcare contributions by 34%, cutting employee costs to $5 per week, which will improve retention but raise corporate expenses further.

Advertising and AI Push Transform Amazon’s Ecosystem

Amazon’s advertising business expanded 23% YoY, continuing to outperform most digital peers, fueled by Prime Video, Fire TV, and marketplace ad placements. The recent Netflix partnership positions Amazon’s DSP as the gateway to premium CTV inventory, spanning the U.S., U.K., Germany, Japan, and Brazil. Combined with earlier deals with Disney and Roku, Amazon is consolidating CTV supply, leveraging its first-party consumer data to capture advertising budgets at higher ROI than independent DSPs like The Trade Desk. AI investments are accelerating across logistics, Alexa voice systems, and advertising automation, with Jassy aiming to make Amazon the “world’s largest startup” by flattening bureaucracy and cutting waste.

Valuation and Market Sentiment Signal Upside Potential

At $230.26, Amazon trades at a TTM P/E of 35.7 and a forward P/E of 30.1, supported by strong growth trends in AWS, advertising, and retail. Its EV/EBITDA multiple of 17.6 is below some mega-cap peers, making it attractive on a relative basis within the Magnificent Seven. Analysts have issued 37 positive revisions in the last three months, pushing consensus targets to $263.30, with bullish cases calling for $270–$300 if Q3 results confirm guidance at the high end. The stock has built an ascending technical triangle since Q2, with breakout potential above $240.

Insider and Institutional Positioning in NASDAQ:AMZN

Institutional support remains strong, with 66.3% of shares held by institutions and average daily volume exceeding 42 million shares. Insider ownership is at 8.4%, reflecting long-term alignment but recent sales activity has raised eyebrows. Full insider transaction history here. The balance between insider caution and institutional accumulation mirrors Amazon’s broader story: operational upside tempered by near-term tariff, labor, and infrastructure risks.

Investment View on NASDAQ:AMZN

Amazon at $230.26 is positioned for breakout if Q3 revenues hit the top of guidance and AWS capacity constraints ease in 2026. Short-term risks stem from November tariff deadlines and rising labor costs, but AWS growth at 17.5%, advertising expansion at 23%, and e-commerce resilience above $670 billion annual revenues make the long-term case compelling. With consensus targets at $263–$270 and technical charts favoring a move beyond $240, NASDAQ:AMZN is rated a Buy, with medium-term upside toward $300 if geopolitical headwinds resolve favorably.

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