Amazon's Operating Margins Continue To Improve

  • Amazon's 1Q25 results show improved operating margins Y/Y, with North America at 6.3% and international at 3%. Valuation concerns include increased capex and slowing non-AWS growth, but potential operating margins of 8% for non-AWS segments suggest strong future earnings. With a market cap below the valuation range, Amazon stock is a buy for long-term investors holding for at least three years.