Amazon's CEO, Andy Jassy, has a powerful message for investors and skeptics alike: AWS is still the dominant force in cloud computing, despite recent market share losses. In a bold statement during the earnings call, Jassy reminded everyone that AWS's growth, while lower in percentage, is built upon a massive revenue base, giving it a significant edge over its competitors.
The numbers don't lie: AWS added a whopping $21.2 billion in revenue in 2025, outpacing Google Cloud's growth of $15.5 billion. And when compared to Azure, AWS's size is more than double, showcasing its market leadership.
But here's where it gets controversial: Amazon's plans to invest a staggering $200 billion in capital expenditures this year has left investors divided. Some see it as a necessary step to maintain its lead, while others question the wisdom of such a massive investment.
And this is the part most people miss: AWS isn't just about revenue; it's a highly profitable venture. In 2025, AWS's operating income soared to $45.6 billion, dwarfing Google Cloud's $13.9 billion.
So, is Amazon stock a buy? Well, that's a tricky question. While Amazon's execution remains solid, with a 14% revenue increase and an 18% boost in operating income, the stock's price-to-earnings ratio is a point of contention. Based on GAAP earnings, it trades at less than 30, but adjusting for gains in equity holdings, it appears fairly valued.
The Motley Fool's Stock Advisor team has identified 10 stocks with monster potential, and Amazon isn't one of them. However, past performance is no guarantee of future results.
Should you buy Amazon stock? That's a decision only you can make. But one thing is clear: Amazon's future growth depends on whether its spending boom pays off.
What do you think? Is Amazon's strategy a wise move, or is it a risky gamble? We'd love to hear your thoughts in the comments.
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