Amazon (AMZN) Fundamentals 2025 — AWS Revenue E-commerce Operating Margin
Amazon's margin expansion story — AWS profitability, e-commerce operating leverage, advertising revenue emergence, and AI infrastructure investment. SniperIQ AI signal for AMZN.
AWS Revenue
Ad Revenue$55B+ (third-largest digital ad biz)
Operating Margin9-11% (recovering from 2022 trough)
AI Investment$40B+ Anthropic + custom chips
Frequently Asked Questions
Why is AWS so profitable for Amazon?
AWS earns 30%+ operating margins vs Amazon's overall 10%. Cloud infrastructure has massive fixed costs but near-zero marginal cost once servers are deployed. AWS's scale (
Is Amazon's advertising business underappreciated?
Amazon Advertising ($55B+ revenue, ~75% operating margin) is the hidden gem — larger than YouTube, growing 20%+, and with superior purchase intent targeting. It's often not valued separately in sum-of-parts analysis, creating a valuation gap.
Analyze Amazon with SniperIQ
SniperIQ tracks AWS growth, Amazon advertising margin expansion, Prime subscriber trends, and institutional flows — with AI signal for AMZN positional trades.