Analyst Shifts Amazon Outlook to Core Holding

An investment analyst has reversed a decade-long strategy of avoiding Amazon.com Inc., now designating the company as a core holding. This shift in sentiment follows a fundamental change in the company's profit mix, with Amazon Web Services (AWS) and advertising services emerging as the primary drivers of overall profitability.

The analyst noted that AWS delivers high, software-like margins, while advertising revenue has surpassed $60 billion annually and continues to grow at approximately 20% year-over-year. These high-margin streams have altered the financial profile of the business.

Beyond digital services, the analyst now interprets Amazon's extensive logistics and fulfillment network as a competitive moat rather than a cost burden. While the company still faces risks regarding regulatory scrutiny and ongoing capital spending, the shift toward diversified, high-margin revenue streams led to the updated long-term outlook.