Amazon Inc (NASDAQ: AMZN), the global technology giant, is in a phase of consolidation and transformation in 2025, responding to new geopolitical challenges while investing in innovations in artificial intelligence and satellite technologies.
Stock development
As of April 29, 2025, Amazon’s share price is around $180.60, down approximately 15% year-to-date. The decline is partly due to increased tariff barriers on Chinese goods, which are affecting margins in the e-commerce segment. Despite this, analysts expect year-over-year revenue growth of 8% and net income growth of 41% in the first quarter, and Oppenheimer lowered its target price on the stock to $220, maintaining an “outperform” investment recommendation.
Project Kuiper
Amazon has taken a significant step towards diversifying its technology through Project Kuiper, a satellite constellation designed to provide global internet connectivity. In April 2025, 27 satellites were successfully launched. A total of 3,236 satellites are to be sent into orbit, with service to be launched by the end of 2025. The company must meet US FCC regulatory requirements, which set a minimum coverage range by mid-2026.
Luxury segment and collaboration with Saks Fifth Avenue
Amazon has expanded its portfolio in the luxury goods sector through a partnership with Saks Fifth Avenue. The joint online portal on Amazon.com enables the sale of brands such as Dolce & Gabbana and Balmain, with Amazon providing the technology platform and logistics, while Saks manages the selection and presentation of products.
Investment in AI and AWS
Amazon is planning a record capital expenditure of US$100 billion in 2025, with the majority of the funds allocated to the development of artificial intelligence and the expansion of the capabilities of the Amazon Web Services (AWS) cloud platform. The aim is to strengthen its competitiveness against rivals such as Microsoft Azure and Google Cloud.
Challenges in e-commerce and the impact of tariffs
Tighter US trade policies, specifically new tariffs on Chinese products, have led to dissatisfaction among some independent sellers on Amazon Marketplace. Some of them are planning not to participate in the planned Prime Day, which could have an impact on ad revenues and third-party merchandise sales.
Conclusion
Amazon Inc. continues to confirm its position as a leader in the technology sector despite short-term market fluctuations. Strategic investments in satellite internet, cloud technologies and product portfolio expansion demonstrate a long-term focus on innovation and global expansion. Investors should consider both the current macroeconomic risks and the high growth potential in the digital services infrastructure when evaluating the company. 50 brokers from Zacks.com have raised their price targets on the stock. The average price target for the short to medium-term investment horizon was set at $247.22 per share.
