Volatility has been the single most prominent theme investors have dealt with in 2025. At one point, the closely watched S&P 500 index fell 10% from its peak, reaching correction territory.
Amazon announced this week that Jennifer Salke is stepping down as the head of Amazon MGM Studios — a move that could indicate high-level dissatisfaction with the company's streaming strategy over the past few years.
The AI bubble appears to be unraveling, but fear is not the solution. Amazon has shown an ability to post both resilient top-line growth and aggressive margin expansion. Amazon has a strong net cash balance sheet.
Attention has been centered on Nvidia (NVDA -1.51%) stock when it comes to the booming market in artificial intelligence (AI). The computer chip maker is now generating more than $100 billion in annual revenue and is valued as one of the largest companies in the world by market capitalization.
Amazon's focus on 3rd party, advertisement and cloud should fuel further growth. Even when predicting rather pessimistic growth rates, the company remains to be trading at fair value right now. When assuming realistic growth and profitability metrics, Amazon could offer additional potential of up to 95%.
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