Where Will Amazon (AMZN) Stock Be in 3 Years?

• Amazon’s banal outperformed the S&P 500 implicit the past 3 years.

• Its e-commerce and unreality concern are inactive growing.

• Its banal looks undervalued comparative to its maturation potential.

• 10 stocks we similar amended than Amazon ›

Amazon (NASDAQ: AMZN) is the world's largest e-commerce and unreality infrastructure company, yet it remains a market-beating maturation stock. Over the past 3 years, its banal has rallied by astir 170% arsenic the S&P 500 has risen by little than 80%.

Can Amazon support that momentum implicit the adjacent 3 years? Let's reappraisal its maturation engines, catalysts, challenges, and valuations to find if it's inactive a worthwhile investment.

Amazon generates astir of its gross from its retail business, which operates dedicated e-commerce marketplaces crossed much than 2 twelve countries. It besides owns Whole Foods Market and operates a constricted fig of Amazon-branded brick-and-mortar stores.

However, Amazon generates most of its profits from Amazon Web Services (AWS), the world's largest unreality infrastructure services provider. AWS controlled 32% of the planetary unreality infrastructure marketplace successful the 2nd 4th of 2025, according to Canalys, putting it acold up of Microsoft's (NASDAQ: MSFT) Azure (22%) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud (11%). In the archetypal 9 months of 2025, Amazon generated 18% of its nett income and 60% of its operating nett from AWS.

AWS' higher-margin revenues alteration Amazon to grow its subscription-based Prime ecosystem with steep discounts, escaped shipping options, streaming media services, inexpensive hardware devices, and different loss-leading strategies. Prime already serves implicit 240 cardinal paid members, and the stickiness of that ecosystem widens its moat against different retailers.

Amazon besides generated 9% of its gross from its advertizing services segment, which sells promoted listings and integrated ads crossed its marketplace and integer platforms, successful the archetypal 9 months of 2025. It doesn't interruption retired the segment's operating profits, but it is apt to run astatine higher margins than its retail business. Therefore, its advertizing concern could grow and germinate into its secondary nett motor alongside AWS implicit the adjacent fewer years.

In 2022, Amazon's nett income roseate by lone 9%, its operating borderline dropped from 5.3% to 2.4%, and its concern successful the struggling EV shaper Rivian (NASDAQ: RIVN) led to a nett loss. That slowdown -- which was caused by inflationary headwinds affecting user spending and slower unreality spending successful a choppy macroeconomic situation -- spooked the bulls.