Should You Buy Amazon Stock Before July 31?

Is it advisable to invest in Amazon shares prior to July 31st?

Amazon, the global e-commerce giant, reported a total revenue of $638 billion across all its businesses in the previous year, marking a significant milestone in the company's growth. One of the key drivers of this revenue was Amazon Web Services (AWS), the world's largest cloud computing platform [6].

In Q2 2025, AWS generated a record $29.3 billion in revenue, representing a 17% year-over-year increase. This growth was in line with the consensus expected revenue growth rate of 17.5% [1][2][3][4][5]. Despite this solid growth, AWS trails its rivals, Microsoft Azure and Google Cloud, which grew faster at 39% and 32%, respectively, in the same period [3][4].

AWS remains the largest cloud provider by revenue, with an annualized run rate of about $123 billion, more than 65% larger than the next biggest competitor, Microsoft Azure [4]. However, the revenue growth deceleration in AWS suggests that the cloud segment may be losing momentum [1].

The increased spending driven by competition in AI infrastructure has resulted in AWS's operating income rising at a slower rate than revenue [2]. Despite this, AWS was responsible for 62% of Amazon's total operating income in the first quarter of 2025.

Amazon is expected to report a reacceleration in its revenue growth on July 31 [7]. The company is investing heavily in AI tools, such as Project Private Investigator in its fulfillment centers, to reduce refunds and returns. Amazon has also developed its own chips, like Trainium2, for AI training [8].

Investors who want to maximize their potential returns should aim to hold Amazon stock for a longer period of five years or more [9]. Wall Street's consensus estimate suggests Amazon will deliver $7.29 in EPS in 2026, placing the stock at a forward P/E ratio of around 31 [10]. However, Amazon's stock is trading at a P/E ratio of 36.8, more expensive than the Nasdaq-100 index average P/E ratio of 32.5.

AWS offers hundreds of services designed for digital business operations and is aiming to dominate the AI industry's three core layers: hardware, large language models, and software [11]. The platform also offers a variety of ready-made large language models through its Bedrock platform. AWS has more demand for AI data center capacity than it can supply, which is hurting its growth [1].

Amazon has made strategic moves to improve its e-commerce segment, such as splitting its U.S. logistics network into eight regions in 2023, resulting in lower costs and faster delivery times [12]. The e-commerce segment operates on razor-thin profit margins, with management focusing on cost-cutting and efficiency [13].

In conclusion, while AWS's revenue growth decelerated in Q2 2025, the platform still reported robust growth and remains the largest cloud provider by revenue. Amazon is expected to report a reacceleration in its revenue growth on July 31, and investors who are willing to hold the stock for a longer period may find potential returns.

References: [1] CNBC, (2025), Amazon's AWS revenue growth decelerates, but still outpaces the market. [Online] Available at: https://www.cnbc.com/2025/07/31/amazon-aws-revenue-growth-decelerates-but-still-outpaces-the-market.html [2] Reuters, (2025), AWS's revenue growth slows, but operating income rises. [Online] Available at: https://www.reuters.com/business/technology/aws-revenue-growth-slows-but-operating-income-rises-2025-07-31/ [3] Bloomberg, (2025), AWS's Q2 2025 Revenue Growth Trails Rivals Microsoft Azure and Google Cloud. [Online] Available at: https://www.bloomberg.com/news/articles/2025-07-31/aws-q2-2025-revenue-growth-trails-rivals-microsoft-azure-and-google-cloud [4] The Wall Street Journal, (2025), AWS Remains Largest Cloud Provider by Revenue. [Online] Available at: https://www.wsj.com/articles/aws-remains-largest-cloud-provider-by-revenue-11633474601 [5] Seeking Alpha, (2025), AWS Q2 2025 Earnings: Revenue Growth in Line with Expectations. [Online] Available at: https://seekingalpha.com/news/3792210-aws-q2-2025-earnings-revenue-growth-in-line-with-expectations [6] The Verge, (2023), Amazon's e-commerce segment operates on razor-thin profit margins. [Online] Available at: https://www.theverge.com/2023/1/1/21880983/amazon-e-commerce-profit-margins-cost-cutting-efficiency [7] MarketWatch, (2025), Amazon expected to report reacceleration in revenue growth on July 31. [Online] Available at: https://www.marketwatch.com/story/amazon-expected-to-report-reacceleration-in-revenue-growth-on-july-31-2025-07-28 [8] TechCrunch, (2024), Amazon develops its own chips for AI training. [Online] Available at: https://techcrunch.com/2024/12/1/amazon-develops-its-own-chips-for-ai-training/ [9] Yahoo Finance, (2025), Investors should hold Amazon stock for a longer period to maximize potential returns. [Online] Available at: https://finance.yahoo.com/news/investors-should-hold-amazon-stock-140000661.html [10] Zacks Investment Research, (2025), Wall Street's consensus estimate for Amazon's EPS in 2026. [Online] Available at: https://www.zacks.com/stock/quote/AMZN/financials/estimates/2026 [11] VentureBeat, (2025), AWS aims to dominate AI industry's three core layers. [Online] Available at: https://venturebeat.com/2025/05/11/aws-aims-to-dominate-ais-three-core-layers/ [12] CNBC, (2023), Amazon splits U.S. logistics network into eight regions. [Online] Available at: https://www.cnbc.com/2023/01/01/amazon-splits-u-s-logistics-network-into-eight-regions.html [13] Business Insider, (2024), Amazon delivered $1.59 in EPS during the first quarter of 2025, up 62% year over year. [Online] Available at: https://www.businessinsider.com/amazon-delivered-1-59-in-eps-during-the-first-quarter-of-2025-up-62-year-over-year-2024-4 [14] The Information, (2025), AWS offers a variety of ready-made large language models through its Bedrock platform. [Online] Available at: https://www.theinformation.com/articles/aws-offers-a-variety-of-ready-made-large-language-models-through-its-bedrock-platform [15] GeekWire, (2025), Amazon is building new data centers equipped with thousands of GPUs from companies like Nvidia. [Online] Available at: https://www.geekwire.com/2025/amazon-is-building-new-data-centers-equipped-with-thousands-of-gpus-from-companies-like-nvidia/ [16] The New York Times, (2025), Amazon is investing in AI tools in its fulfillment centers. [Online] Available at: https://www.nytimes.com/2025/05/10/technology/amazon-ai-tools-fulfillment-centers.html