How is Amazon's e-commerce business becoming more profitable?

Amazon's e-commerce profitability is improving due to investments in robotics and automation in its fulfillment centers.

What is Amazon Web Services (AWS) doing for the AI boom?

AWS is significantly increasing its computing capacity to meet the growing demand driven by the artificial intelligence arms race.

Is Amazon's advertising business growing quickly?

Yes, Amazon's advertising segment is its fastest-growing business, generating substantial revenue through targeted ad programs.

Home / Business and Economy / Amazon's Hidden Growth: Beyond E-commerce

Amazon's Hidden Growth: Beyond E-commerce

20 Jan

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Summary

Robotics and automation are projected to save Amazon billions in operating costs.
AWS is investing heavily in computing capacity for the AI arms race.
Advertising is rapidly becoming a lucrative, fast-growing segment for Amazon.

Amazon's Hidden Growth: Beyond E-commerce

Amazon's stock, which saw a modest 5% gain in 2025, is currently undervalued by the market, making it an attractive investment. The company's core e-commerce business is on the cusp of significant profitability improvements, largely driven by the integration of robotics and automation, which is expected to save billions in operational expenses.

Amazon Web Services (AWS), the company's primary profit engine, is undergoing substantial expansion. Despite facing increased competition, AWS is investing heavily to double its computing capacity by 2027, essential for capturing opportunities in the artificial intelligence boom and clearing existing backlogs.

Furthermore, Amazon's advertising division has emerged as a rapidly growing and lucrative revenue stream. Leveraging vast customer data, this segment offers targeted advertising solutions across Amazon's extensive platform, establishing a crucial third profit center for the tech giant.