Should I buy Amazon stock in 2025? Insights for UAE Investors
Is Amazon stock a buy right now?
ScoreAs of late May 2025, Amazon (AMZN) is trading at approximately $205.70 USD per share, with a daily trading volume averaging 34.7 million shares—an unmistakable mark of the company’s solid investor following. Recent quarterly results exceeded expectations, highlighted by revenue rising 9% year-over-year to $155.7 billion and an earnings-per-share gain that beat analyst forecasts by nearly 17%. While Amazon faces manageable challenges such as a marginally slower AWS (cloud) growth rate and evolving cost dynamics, the company continues to invest heavily in artificial intelligence and infrastructure. Strategic steps, including leadership’s commitment to efficiency enhancements and major AI-driven projects, reinforce its stature in the e-commerce and cloud computing sectors, both of which remain foundational to the US and global digital economy. The overall market tone is optimistic, as reflected in consensus "Buy" ratings from 74 analysts. The sector’s momentum—powered by digital transformation and AI adoption—places Amazon among the most resilient and innovative market leaders. According to the consensus of more than 33 national and international banks, the price target is set at $267.40, signaling robust confidence in Amazon’s medium-term outlook. For investors passionate about technology and growth, Amazon continues to stand out as a benchmark stock.
- ✅Exceptional Q1 2025 earnings exceeding analyst expectations and driving investor confidence.
- ✅Dominant positions in both global e-commerce and cloud computing through AWS.
- ✅Aggressive investment in AI infrastructure and innovation with long-term scalable impact.
- ✅Diversified revenue streams across Prime, advertising, logistics, and international business.
- ✅Consistent top-line growth supported by resilient business models and strategic cost control.
- ❌AWS growth slightly below expectations, though still strong for the sector’s maturity.
- ❌High valuation multiples reflect optimism but may introduce mild volatility in uncertain periods.
Score- ✅Exceptional Q1 2025 earnings exceeding analyst expectations and driving investor confidence.
- ✅Dominant positions in both global e-commerce and cloud computing through AWS.
- ✅Aggressive investment in AI infrastructure and innovation with long-term scalable impact.
- ✅Diversified revenue streams across Prime, advertising, logistics, and international business.
- ✅Consistent top-line growth supported by resilient business models and strategic cost control.
Is Amazon stock a buy right now?
- ✅Exceptional Q1 2025 earnings exceeding analyst expectations and driving investor confidence.
- ✅Dominant positions in both global e-commerce and cloud computing through AWS.
- ✅Aggressive investment in AI infrastructure and innovation with long-term scalable impact.
- ✅Diversified revenue streams across Prime, advertising, logistics, and international business.
- ✅Consistent top-line growth supported by resilient business models and strategic cost control.
- ❌AWS growth slightly below expectations, though still strong for the sector’s maturity.
- ❌High valuation multiples reflect optimism but may introduce mild volatility in uncertain periods.
Score- ✅Exceptional Q1 2025 earnings exceeding analyst expectations and driving investor confidence.
- ✅Dominant positions in both global e-commerce and cloud computing through AWS.
- ✅Aggressive investment in AI infrastructure and innovation with long-term scalable impact.
- ✅Diversified revenue streams across Prime, advertising, logistics, and international business.
- ✅Consistent top-line growth supported by resilient business models and strategic cost control.
- What is Amazon?
- How much is the Amazon stock?
- Our comprehensive analysis of the Amazon stock
- How to buy Amazon stock in the AE?
- Our 7 tips for buying Amazon stock
- The latest news about Amazon
- FAQ
What is Amazon?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | US-based giant, offering strong global reach and cross-region diversification. |
| 💼 Market | NASDAQ | Listed on NASDAQ, ensuring high liquidity and global investor access. |
| 🏛️ ISIN code | US0231351067 | Internationally recognized ISIN for seamless trading and portfolio inclusion. |
| 👤 CEO | Andy Jassy | Leading Amazon since 2021, driving strategic focus on AI and cloud expansion. |
| 🏢 Market cap | $2.18 trillion | Amazon is one of the world's largest companies, indicating robust market confidence. |
| 📈 Revenue | $155.7 billion (Q1 2025) | Q1 2025 revenue grew by 9% YoY, highlighting resilient and diversified business growth. |
| 💹 EBITDA | $18.41 billion (Q1 2025, op. inc.) | Strong operating income signals excellent profitability and operational discipline. |
| 📊 P/E Ratio (Price/Earnings) | 33.56 | High P/E reflects premium growth expectations; justified by strong performance and outlook. |
How much is the Amazon stock?
The price of Amazon stock is rising this week. Currently, Amazon is trading at $205.70, up $0.98 (+0.48%) over the last 24 hours, and showing positive momentum week-over-week. The company boasts a robust market capitalization of $2.18 trillion, with a healthy average 3-month trading volume of 1,074.42 million shares.
| Metric | Value |
|---|---|
| Price | $205.70 |
| Change (24h) | $0.98 (+0.48%) |
| Market Capitalization | $2.18 trillion |
| Average 3-Month Volume | 1,074.42 million shares |
| P/E Ratio | 33.56 |
| Dividend | None |
| Beta | 1.31–1.43 |
Amazon’s price-to-earnings (P/E) ratio stands at 33.56, while the stock does not pay a dividend. With a beta between 1.31 and 1.43, Amazon reflects slightly higher market volatility, which can offer both opportunities and risks for investors in the UAE market.
Discover the best brokers in the United Arab Emirates!Compare brokersOur comprehensive analysis of the Amazon stock
Having assessed Amazon’s most recent quarterly results, its price trajectory over the past three years, and consolidated multi-source analytics via advanced proprietary algorithms, we present a comprehensive and forward-looking view of Amazon’s equity standing. Merging financial metrics, technical signals, broad market context, and the competitive landscape, our analysis zeroes in on Amazon’s sector dominance and future catalysts. So, why might Amazon stock once again become a strategic entry point into global technology and digital infrastructure in 2025?
Recent Performance and Market Context
Amazon (NASDAQ: AMZN) has reaffirmed its stature as a bellwether of the global technology sector, with its share price at $205.70 as of May 29, 2025. This represents a robust recovery from the 52-week low of $151.61, following a period of rotation and profit-taking after the all-time high of $242.52 reached in February 2025. Over the past three years, Amazon has outpaced most sector benchmarks, rebounding from the volatility witnessed in 2022 and 2023, supported by resilient consumer demand and continued cloud services expansion.
The Q1 2025 earnings blowout—revenues of $155.7 billion (+9% YoY) and EPS at $1.59 (beating expectations by almost 17%)—has reinforced market confidence. Performance across regions remains uniformly strong: North America up 10% YoY, International up 9%, and AWS—Amazon’s cloud powerhouse—advancing at 16.9% YoY.
Favorable sector dynamics underpin current momentum. Globally, digital commerce and cloud services are experiencing secular expansion, benefiting from accelerating digital adoption and the proliferation of generative AI. Technology sentiment in the US remains constructive, and regulatory headwinds have moderated, providing a stable backdrop for mega-cap techs—Amazon very much included.
- Strategic investments in AI infrastructure, fueling next-generation cloud and retail innovations.
- Announced workforce optimizations, with 14,000 managerial positions to be phased out to streamline management layers and realize an estimated $3 billion in annualized savings.
- Return to in-office operations, signaling Amazon’s renewed organizational discipline—a key signal to institutional investors.
Taken together, these strategic initiatives enhance operational agility and buttress top-line growth, helping position Amazon as a potential outperformer within both technology and consumer sectors as 2025 unfolds.
Technical Analysis
Current technical readings paint a picture of a stock regaining upward traction after digesting gains from its February highs:
- RSI (14 days): 57.92—Comfortably below “overbought” territory, indicating room for additional upside.
- MACD (12,26,9): +4.29—Clear positive momentum and bullish crossover affirm a short-term upward bias.
- Price Action: Amazon is holding above near-term key support at ~$204.23, with dominant resistance at ~$208.81. The proximity to support, reinforced by recent high-volume buying around these levels, creates a technically favorable risk/reward profile.
- Moving Averages: Price is trading above its 20-day SMA (~$198), reinforcing short-term bullishness and aligning with well-established medium-term uptrends. This structure typically precedes renewed rallies when coupled with solid fundamentals.
In sum, technical momentum is gradually reasserting itself. The absence of significant overbought signals combined with strong support levels suggests Amazon may be entering a renewed bullish phase—one that could attract both technical and fundamental investors.
Fundamental Analysis
Amazon’s fundamental profile continues to justify focused investor attention:
- Revenue Growth: Q1 revenue surged to $155.7 billion, up 9% year-on-year. AWS, its high-margin cloud segment, delivered +16.9% YoY growth, underlining the business’s diversification and resilience.
- Profitability: Operating income hit $18.41 billion, with EPS at $1.59—beating consensus by a notable margin. Continued margin expansion stems from management’s cost-control initiatives and increasing operational leverage in high-growth verticals.
- Valuation: The stock trades at 33.6x forward earnings (consensus estimate), higher than historical market averages but justified by above-sector growth trajectories, a commanding market position, and material exposure to secular tailwinds in AI and cloud. The PEG and P/S ratios similarly reflect high growth relative to sector peers, especially at current price levels.
- Strategic Expansion: Focused capital expenditures in AI infrastructure and global market development expand TAM and strengthen competitive moats. Amazon’s “Why Culture” (YQ), highlighted in its 2024 shareholder letter, exemplifies a culture of innovation, efficiency, and customer-centricity—a rare intangible strength in trillion-dollar companies.
Structural strengths that reinforce the bullish case:
- Unrivaled global e-commerce leadership.
- Clear dominance in cloud infrastructure (AWS), with expanding product adjacencies.
- A flywheel ecosystem—Prime, advertising, logistics—supports cross-business synergies and barriers to entry.
- Ongoing innovation in high-value segments: AI, advertising, and logistics automation.
Combined, these factors ensure the fundamentals justify renewed interest in Amazon, especially as it enters the next phase of transformative digital adoption worldwide.
Volume and Liquidity
Amazon’s market liquidity is exceptionally robust, with a daily volume of approximately 34.7 million shares and a three-month average of over 1 billion shares traded. The public float stands at a substantial 9.49 billion shares, ensuring efficient price discovery and depth. This volume profile signals sustained institutional confidence and enables both dynamic trading strategies and sizable entry/exit positions without significant price dislocation.
Such liquidity is particularly critical in volatile macroeconomic environments, as it reinforces fair valuation and facilitates tactical positioning by sophisticated market participants.
Catalysts and Positive Outlook
Several catalysts stand out, amplifying Amazon's medium-term outlook:
- AI-Driven Growth: Unrelenting demand for AI-powered cloud services is driving AWS’s next growth cycle. CEO Andy Jassy has signaled multi-billion dollar investments in AI, positioning AWS as a key beneficiary of the global shift toward intelligent compute and data services.
- Organizational Efficiency: The targeted managerial workforce reductions are set to yield $3 billion in annual savings, recycled directly into innovation and growth initiatives.
- Strong Analyst Consensus: Out of major covering analysts, 74% rate Amazon a “Buy,” with a consensus price target of $247.18—implying a 20% upside from current levels.
- Expansion Opportunities: International operations and logistics investments open new addressable markets, especially in high-growth emerging regions.
- ESG and Innovation: Amazon maintains a comprehensive ESG agenda, aiming for net-zero carbon by 2040 and integrating sustainability into all facets of its operations—resonating well with institutional mandates, notably in the AE region, where ESG-compliant equities are increasingly prioritized.
- Broad Industry Tailwinds: The technology sector is enjoying a rebirth of capital flows as global digitalization, cloud, and AI investment accelerate into 2025.
Against these drivers, Amazon appears well-positioned to benefit from ongoing secular growth themes in global commerce, cloud computing, and intelligent automation.
Investment Strategies
Amazon’s versatile profile makes it suitable for several portfolio approaches:
Short-term entry arguments:
- Technical setup is constructive near strong support (~$204), offering a compelling opportunity for tactical traders to position ahead of anticipated bounces toward resistance (~$208 and above).
- Near-term momentum may be catalyzed by upcoming product launches, AWS contract wins, or incremental positive news on cost-optimization programs.
Medium-term positioning:
- As Amazon consolidates its multi-month gains just beneath the 52-week high, any confirmed bullish reversal on technical indicators or volume surges could precede a new upward leg, especially into the next earnings cycle.
- Ongoing sector momentum and high analyst conviction point to favorable risk-reward for holding through the medium term.
Long-term allocation:
- For strategic investors, the combination of secular growth, market share leadership, robust fundamentals, and innovation drive offers a rare blend of resilience and upside.
- Participation ahead of 2025’s likely AI and cloud-driven business cycle upswings allows portfolio exposure to a long-term compounder, with the potential to outperform broader market indices.
In all cases, disciplined risk management and periodic review of key technical levels and macro developments are recommended for capital preservation and profit optimization.
Is It the Right Time to Buy Amazon?
In summary, Amazon currently offers:
- Exceptional top-line and bottom-line momentum, consistently exceeding market forecasts.
- A technical setup favoring entry near solid support, with bullish momentum readings.
- A justified premium valuation reflecting its unique blend of scale, growth, and innovation leadership.
- Highly liquid trading conditions, attracting institutional flows and ensuring efficient price discovery.
- Powerful catalysts from AI, organizational streamlining, and ESG leadership.
- A consensus target pointing to significant upside from current levels.
Considering its foundational strengths, outlook, and present positioning, Amazon seems to represent an excellent opportunity for investors seeking exposure to sector leaders in digital transformation and next-generation cloud. While risks bear monitoring, the evidence supports the view that AMZN may be entering a new bullish phase—and the fundamentals justify renewed interest in the stock as a cornerstone of forward-looking portfolios. For those tracking global technology’s next leg higher, Amazon’s current phase arguably offers a strategic window to capitalize on the sector’s mounting tailwinds and innovations.
How to buy Amazon stock in the AE?
Buying Amazon shares online from the UAE is simpler and safer than ever thanks to regulated brokers. As an investor, you can access Amazon (NASDAQ: AMZN) stock in just a few clicks, using either the classic “spot” purchase method or trading via Contracts for Difference (CFDs). Each approach offers specific benefits in terms of ownership and risk management. Below, you’ll find a clear explanation of both methods, and further down the page, you can compare the latest offers from reliable brokers available in the region.
Spot Buying
Spot buying refers to purchasing Amazon stock outright on a cash basis: you become the direct owner of real AMZN shares held in your account. Most regulated brokers in the UAE charge a low fixed commission per trade, typically from AED 18 to AED 25 (about $5–$7) per transaction.
Example
Let’s say you want to invest $1,000. With Amazon’s share price at $205.70, you can buy around 4 full shares ($205.70 × 4 = $822.80) and keep the remainder as available cash in your account, after accounting for a $5 brokerage fee.
✔️ Gain scenario
If Amazon’s stock rises by 10%, your 4 shares will increase in value to about $902.80.
Result: You realize a $80 gross gain (+10%) on your investment (excluding fees and any small currency fluctuations).
Trading via CFD
CFD trading allows you to speculate on Amazon’s price movements without owning the underlying shares. When using CFDs, you trade with leverage—meaning you can increase your market exposure for the same initial outlay. CFD trades typically incur a spread (the difference between the buy/sell prices) and, if held overnight, daily financing costs.
Example
Suppose you open a CFD position on Amazon with a $1,000 margin and use 5x leverage. This gives you exposure to $5,000 worth of AMZN shares.
✔️ Gain scenario
If Amazon’s share price rises by 8%, your position value increases by 40% (8% × 5).
Result: That’s a $400 gain on your $1,000 margin (before deducting spreads and overnight fees).
Final Advice
Before investing, it’s essential to compare different brokers’ fees, platforms, and regulatory status to ensure your trading experience is both cost-effective and secure. Whether you choose the straightforward path of real share ownership or the flexibility and leverage of CFD trading depends entirely on your investment goals and risk tolerance. A detailed broker comparison is available further down the page to help you make an informed decision.
Discover the best brokers in the United Arab Emirates!Compare brokersOur 7 tips for buying Amazon stock
| 📊 Step | 📝 Specific tip for Amazon |
|---|---|
| Analyze the market | Evaluate Amazon's consistent growth in both e-commerce and cloud (AWS), as well as its leadership in AI, which strongly support long-term potential for the stock. |
| Choose the right trading platform | Select a UAE-licensed broker that provides access to the NASDAQ, competitive commissions, and strong account security for trading Amazon shares in USD. |
| Define your investment budget | Decide how much to allocate to Amazon, keeping in mind its price volatility and that it does not pay dividends; diversify to reduce risk. |
| Choose a strategy (short or long term) | For most investors in the UAE, a long-term approach can be more strategic, leveraging Amazon’s dominant position and technological innovation. |
| Monitor news and financial results | Follow Amazon’s quarterly earnings and strategic updates, especially AI investments and AWS growth, which often drive stock movements. |
| Use risk management tools | Apply stop-loss orders and position sizing to protect your capital against price swings, making use of the tools offered by your broker in the UAE. |
| Sell at the right time | Consider taking profits if Amazon’s price nears its all-time highs or if you anticipate market volatility due to major announcements or regulatory changes. |
The latest news about Amazon
Amazon delivered outstanding Q1 2025 results, exceeding analysts' expectations for both revenue and earnings per share. The company posted a quarterly revenue of $155.7 billion, up 9% year-over-year, and earnings per share of $1.59, significantly beating the consensus estimate of $1.36 (+16.9%). Operating income reached $18.41 billion, supported by strong demand across all business segments including e-commerce, international operations, and particularly AWS, which saw a robust growth of 16.9% YOY. These results have contributed to sustained investor confidence, especially relevant for UAE-based institutions and individuals who favor US technology equities with reliable growth profiles and sector leadership, as Amazon's global reach directly influences product availability and service standards in the Gulf region.
Amazon Web Services (AWS) remains a key growth engine, driven by surging demand for AI-powered cloud solutions, including within the UAE market. AWS revenue climbed to $29.27 billion, accounting for a substantial portion of Amazon's overall profitability and further capitalizing on the "insatiable" market appetite for AI and machine learning infrastructure—trends echoed by rapid enterprise digitalization throughout the Middle East. In the UAE, AWS continues to expand its cloud footprint, building on its regional data center presence and enabling local businesses to accelerate digital transformation. This strategic positioning strengthens Amazon’s relevance in the Gulf, supporting both B2B and governmental modernization agendas.
The current analyst consensus targets a significant upside for Amazon stock, with a 20% price appreciation potential from current levels. As of May 29, 2025, Amazon’s target price stands at $247.18, well above the current price of $205.70, with 74 investment analysts maintaining a "Buy" recommendation. This widespread optimism reflects strong anticipated growth, ongoing gains from operational efficiency programs, and leadership in high-growth verticals. For investors in the UAE, such positive sentiment from global financial experts highlights Amazon’s perceived resilience and growth visibility—key selection criteria in regional portfolios seeking capital appreciation and US exposure.
Amazon is aggressively investing in AI infrastructure and implementing strategic initiatives to enhance efficiency and future growth. CEO Andy Jassy has recently emphasized record investments in artificial intelligence and cloud infrastructure, aligning with global trends toward automation and smart commerce. Notable efficiency measures include the reduction of 14,000 management roles, aimed at generating $3 billion in annual savings, and a full return to office policy to reinforce operational culture. These moves not only boost Amazon’s fiscal discipline and innovation but also ensure continued service improvements and technology advancements, benefits that extend to customers and partners in the UAE.
Technical market signals remain constructive, with Amazon’s stock trading above key short-term moving averages and showing positive momentum. The 14-day RSI at 57.92, a positive MACD reading, and maintenance above the 20-day moving average (SMA ~$198) collectively indicate ongoing bullish momentum. This technical strength, coupled with a stable support zone near $204.23, provides reassurance to market participants, including sophisticated UAE-based investors who closely monitor global tech benchmarks for tactical asset allocation decisions. The favorable technical setup complements the company’s strong fundamentals, reinforcing the attractiveness of Amazon stock in cross-border growth-focused portfolios.
FAQ
What is the latest dividend for Amazon stock?
Amazon does not currently pay a dividend to its shareholders. The company has historically reinvested all profits into its business segments, focusing on growth in e-commerce, cloud computing, and new technologies such as artificial intelligence. This reinvestment strategy has helped Amazon maintain its market leadership and long-term expansion.
What is the forecast for Amazon stock in 2025, 2026, and 2027?
Based on the current share price of $205.70, the projected price by the end of 2025 is $267.41, by the end of 2026 is $308.55, and by the end of 2027 is $411.40. These optimistic forecasts are underpinned by Amazon’s record financial results, market dominance, and strong momentum in its cloud and AI divisions.
Should I sell my Amazon shares?
Holding onto Amazon shares could be a sound strategy, given the company’s robust fundamentals and ongoing innovation in key growth areas. Amazon has a strong track record of outperformance, demonstrated resilience in dynamic markets, and continues to attract positive sentiment from analysts. Its position in e-commerce and cloud services supports long-term value potential for investors considering a longer horizon.
Are capital gains from Amazon stock taxed in the UAE?
Capital gains from Amazon shares are not subject to personal income tax for individual investors in the UAE. The country does not levy taxes on capital gains or dividends for retail investors, making it an attractive location for international equity investments. However, always check if your broker applies any foreign withholding taxes on U.S. stocks.
What is the latest dividend for Amazon stock?
Amazon does not currently pay a dividend to its shareholders. The company has historically reinvested all profits into its business segments, focusing on growth in e-commerce, cloud computing, and new technologies such as artificial intelligence. This reinvestment strategy has helped Amazon maintain its market leadership and long-term expansion.
What is the forecast for Amazon stock in 2025, 2026, and 2027?
Based on the current share price of $205.70, the projected price by the end of 2025 is $267.41, by the end of 2026 is $308.55, and by the end of 2027 is $411.40. These optimistic forecasts are underpinned by Amazon’s record financial results, market dominance, and strong momentum in its cloud and AI divisions.
Should I sell my Amazon shares?
Holding onto Amazon shares could be a sound strategy, given the company’s robust fundamentals and ongoing innovation in key growth areas. Amazon has a strong track record of outperformance, demonstrated resilience in dynamic markets, and continues to attract positive sentiment from analysts. Its position in e-commerce and cloud services supports long-term value potential for investors considering a longer horizon.
Are capital gains from Amazon stock taxed in the UAE?
Capital gains from Amazon shares are not subject to personal income tax for individual investors in the UAE. The country does not levy taxes on capital gains or dividends for retail investors, making it an attractive location for international equity investments. However, always check if your broker applies any foreign withholding taxes on U.S. stocks.
