Amazon has had a strong year on the stock market, with its share price climbing by about 25% over the past twelve months. 

Speaking on Taking Stock with Kalilah Reynolds, Jodian Aris, Assistant Vice-President at Sagicor Investments, explained that Amazon has been working in a “competitive landscape.” 

She noted that rivals like Target are expanding delivery services, creating new pressure. At the same time, Amazon is moving into new areas like health care, cloud services, and artificial intelligence. 

“Even though their generative AI and Amazon Web Services is a big catalyst for growth, they are not leading in this space,” Aris said. “But they are looking to expand, and that provides opportunity.”

Amazon’s earnings report for the second quarter showed mixed results. On the positive side, the company’s profit margins improved, and revenue stayed strong. A big July sales event boosted revenues by about 30% in just one weekend. Earnings per share also grew, though at a slower rate than in past years. Aris explained that while EPS growth was around 70% in earlier years, it has now cooled to about 50%. Still, that is considered strong by most analysts.

Not everything is working smoothly. Aris pointed out that Amazon has had some decline in efficiency, such as managing inventory. She also said that tariffs are a concern for the company going forward. While the impact was less than expected in the last quarter, trade talks remain uncertain and could create new challenges.

Despite these issues, analysts continue to view Amazon in a positive light. Many say the company’s long-term growth looks solid, especially with its push into health services, digital ads, and AI. Aris reminded investors that Amazon does not pay a dividend, as the company prefers to reinvest profits into new projects and future growth.

For Jamaicans who want to invest, Aris said they can do so through Sagicor Investments. Options include buying Amazon shares directly or investing in the Sagicor Sigma Global Equity Fund, which gives exposure to US stocks.