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Amazon: AWS And The New Logistics Business Should Take It...
2026-05-06 · via All Articles on Seeking Alpha

Summary

  • Amazon.com, Inc. delivered a standout Q1, with $181.5B revenue (+17% YoY) and EPS of $2.78, crushing expectations and validating its CapEx strategy.
  • AWS growth reaccelerated to 28% YoY, reaching a $150B run-rate, while Amazon's custom silicon and AI chip businesses are scaling rapidly toward a $50B run-rate.
  • Retail and advertising margins are expanding, with Q1 operating margin at a record 13.1% and ad revenue compounding at 24% YoY on a $70B TTM base.
  • AMZN's launch of Supply Chain Services opens a new high-margin profit center, and shares remain undervalued versus WMT and COST despite superior growth and optionality.
Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

Since March 30th, shares of Amazon.com, Inc. (AMZN) have rallied into earnings, then went parabolic and broke out to new all-time highs. Shares of AMZN are up roughly 36% in just over a month

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, META either through stock ownership, options, or other derivatives. 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.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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