Amazon.com (NasdaqGS:AMZN) Expands AWS Collaboration With Softchoice Targeting SMBs In 2025

Amazon.com (NasdaqGS:AMZN) experienced a 4.6% price rise last week. This movement was alongside a tech rally in broader markets, with the Nasdaq up 2.3% as investors reacted to corporate earnings and awaited tariff updates. Concurrently, a shareholder proposal urging Amazon to disclose Scope 3 greenhouse gas emissions was filed, reflecting environmental accountability trends. Although significant, this event likely added minimal weight to the share performance. Furthermore, broader positive market sentiments, driven by strong earnings reports from the tech sector, contributed to the favorable environment, counteracting any specific influence from Amazon-focused news. Overall, Amazon's gains mirrored broader market advances.

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The recent news regarding Amazon.com's decision to disclose Scope 3 greenhouse gas emissions might enhance its perception of environmental responsibility, potentially aligning with investor preferences and affecting long-term shareholder sentiment. However, in the short term, this development appears to have minimal impact on the company's revenue or earnings forecasts, which remain driven principally by its investments in AI and automation. Over the past five years, Amazon's total return, which includes share price and dividends, reached 46%. This performance highlights a robust period of growth, contrasting with underperformance against the US Multiline Retail industry, which returned 7.6% over the past year.

In terms of revenue and earnings projections, the decision to address greenhouse gas emissions lacks a direct contribution to changes in forecasts. Nonetheless, strategic investments, especially those aimed at cost efficiencies, continue to be pivotal in driving expected annual revenue growth of 8.6%. Amazon's recent share price movement is consistent with a bullish sentiment in the tech sector, offering a sense of optimism against the analyst consensus price target of US$246.08. With the current share price at US$173.18, the implication is a significant upside potential, albeit matched by accompanying risks linked to high capital expenditure and market dynamics.

Learn about Amazon.com's future growth trajectory here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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