Amazon's revenue growth is expected to moderate in the near term due to macroeconomic caution and tariff uncertainties. However, the company's diversified revenue streams, including North America, International, and AWS, provide a solid foundation. The shift towards higher-margin services like subscriptions and advertising is a positive trend. Raymond James downgraded AMZN due to concerns about EBIT pressures in 2025-26, citing macro/tariff risks and investment intensity. Despite these concerns, Bank of America sees Amazon as undervalued compared to Walmart, emphasizing the long-term AI and retail margin story.

Amazon's growth perspective is shaped by its strategic initiatives in AI, Project Kuiper, and Alexa+. CEO Andy Jassy emphasizes customer-centric innovation and operating like a startup. However, the company faces challenges in increasing Project Kuiper satellite production and competition in the AI landscape, particularly from Google's Gemini. Simple Investment Ideas downgraded AMZN due to the Google Gemini threat. Despite these challenges, Wedbush remains optimistic about Amazon's long-term AI and infrastructure investments.

Amazon's valuation is a point of contention, with some analysts considering it reasonable while others highlight its high valuation relative to peers. The stock's recent decline has made it cheaper, but visibility remains limited due to multiple moving factors and tariff uncertainties. Morgan Stanley lowered its 2026 EPS estimate on AMZN, indicating a cautious outlook. However, Bank of America argues that Amazon is undervalued compared to Walmart, citing the long-term AI and retail margin story.

Amazon faces several risks, including potential impacts from tariffs, macroeconomic headwinds, and increasing competition in the AI and cloud markets. Raymond James downgraded AMZN due to uneven macro/tariff risks and steepening investment intensity. The company's exposure to China and potential supply chain disruptions are also concerns. Additionally, Apollo Asset Management noted that the Magnificent Seven, including Amazon, are more vulnerable to a global economic slowdown and trade tensions due to their higher international earnings exposure.

Amazon continues to innovate with new AI models like Nova Sonic and investments in Project Kuiper. The company's 'Project Greenland' strategy aims to secure sufficient GPU capacity for AI applications. However, Amazon faces challenges in boosting Project Kuiper satellite production and competition from Google's Gemini in the AI landscape. Anthropic's addition of Research and Google Workspace integration to Claude highlights the competitive pressure in AI.

Amazon faces increasing competition in both its e-commerce and cloud businesses. In e-commerce, it competes with Walmart, Costco, and other retail giants, as well as online marketplaces like Alibaba and Temu. In the cloud, it faces strong competition from Microsoft Azure and Google Cloud. The company's ability to maintain its market share and competitive advantages will be crucial for its future growth.

Amazon is highly sensitive to macroeconomic factors, including tariffs, inflation, and consumer spending. The company's international exposure makes it vulnerable to global economic slowdowns and trade tensions. Raymond James downgraded the stock due to an uneven macro/tariff backdrop. The potential for increased tariffs or new taxes on digital services could further dampen the global earnings of the company.

Amazon has a large and growing TAM across its various business segments. The e-commerce market is expected to continue to grow, and Amazon is well-positioned to capture a significant share of this growth. The cloud computing market is also expected to expand rapidly, driven by AI and digital transformation. Project Kuiper represents a significant market opportunity for providing broadband connectivity to underserved areas. However, the company faces challenges in executing these initiatives and maintaining its market leadership.

Amazon faces geopolitical risks related to trade tensions between the U.S. and China, as well as potential regulatory challenges in Europe. The company's reliance on Chinese suppliers and its international operations make it vulnerable to these risks. However, Amazon's strong governance and diversified revenue streams mitigate these concerns.