Mon May 12 09:10:00 UTC 2025: **Amazon Remains a Long-Term Buy Despite Headwinds, Says Motley Fool Analyst**

**New York, NY – October 26, 2024** – Despite recent market volatility and concerns about tariffs, financial analysis firm The Motley Fool maintains a bullish outlook on Amazon (AMZN), arguing the tech giant remains a strong long-term investment. The recommendation comes from analyst Jon Quast, who points to two key drivers: Amazon’s robust retail business and the explosive growth potential of its cloud computing division, Amazon Web Services (AWS).

Quast highlights that Amazon’s retail operations, encompassing online and physical stores and third-party seller services, generated nearly $100 billion in net sales in Q1 2025 alone. While acknowledging uncertainty surrounding tariffs, he emphasizes that this headwind is industry-wide and unlikely to disproportionately impact Amazon.

The analyst’s primary focus, however, is on AWS. With trailing-12-month net sales of $112 billion and continued 17% growth in Q1 2025, Quast believes AWS is poised for substantial long-term expansion. He cites CEO Andy Jassy’s prediction that cloud computing’s share of global IT spending will increase from 15% to 85% over the next two decades, positioning AWS for significant gains. Furthermore, the rapid growth of Amazon’s AI business, exceeding 100% annually and already generating billions in revenue, further fuels this optimistic forecast.

Quast concludes that Amazon’s stable retail sector combined with the massive growth potential of AWS, particularly fueled by AI, makes the stock a compelling long-term buy despite short-term market fluctuations. The significant profitability of AWS, with a nearly 40% operating margin in Q1 2025, underscores this positive outlook. While acknowledging the need for patience, Quast projects significantly higher profits for Amazon within five years, leading to a corresponding increase in stock value.

**Note:** This article incorporates information from The Motley Fool’s analysis and includes a disclaimer regarding potential conflicts of interest. The views expressed are those of the analyst and do not necessarily represent the views of all investors or financial professionals. Investing involves risk, and past performance is not indicative of future results.

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