Amazon.com, Inc. (AMZN)

Amazon's stock performance in the latter half of 2025 and early 2026 was influenced by several key events. While AMZN stock gained 5% in 2025, it underperformed the S&P 500. However, 2026 has seen a strong start, with the stock rising 7% year-to-date, fueled by analyst optimism and AI integration. After reporting strong Q3 2025 earnings, AMZN hit an all-time high on November 3, 2025. In July 2025, Amazon deployed its 1 millionth robot and a new AI foundation model and debuted a line of branded Amazon Grocery products. Jeff Bezos sold nearly 3 million shares in July 2025. In January 2026, Amazon began negotiating with suppliers for discounts to offset tariff-related costs. On December 28, 2025, Amazon paused its commercial drone delivery plans in Italy.

Demand seasonality is a critical factor for Amazon, characterized by predictable changes in product demand throughout the year. The fourth quarter (Q4) is consistently the busiest period due to major holiday sales events. Different product categories experience demand spikes at various times, such as toys and electronics around Christmas, outdoor furniture in summer, and school supplies during the back-to-school season. Understanding seasonality is crucial for Amazon sellers to optimize inventory, marketing, and pricing strategies.

Amazon.com, Inc. is a multinational technology company involved in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It operates primarily within the technology sector, with a significant presence in the consumer cyclical and retail-cyclical industries. Amazon's portfolio includes e-commerce and retail services like Amazon.com marketplace, Amazon Fresh, and Whole Foods Market; electronic devices such as Kindle, Echo, and Fire; cloud computing services through Amazon Web Services (AWS); digital content and entertainment via Amazon Prime Video, Amazon Music, and Amazon MGM Studios; and other services like Amazon Pay, Amazon Pharmacy, Amazon Business, and AI services.

Amazon has a vast global presence, with North America accounting for a significant portion of its operations. International segments contribute approximately 22% of its total revenue, with Germany, the United Kingdom, and Japan being leading markets. The company has over 900 data center facilities across more than 50 countries. In 2018, Amazon's global real estate footprint was 288 million square feet, with over two-thirds located in North America.

Amazon is recognized for its strong brand image and customer-centric approach, fostering high brand loyalty through its Prime membership program. In 2023, Amazon reclaimed its position as the USA's most valuable brand, despite a 15% decrease in brand value. Amazon's brand reputation has been associated with its continued growth and innovation, including record-breaking sales during Prime Day 2025 and Cyber Week. Advancements in AI and robotics, along with the expansion of its grocery business and Amazon Pharmacy, contribute to a perception of innovation. The company continues to face competitive pressures in e-commerce and cloud services.

Amazon is a publicly traded company primarily owned by its shareholders. Jeff Bezos is the largest individual shareholder, owning approximately 8.28% to 8.43% of outstanding shares, while Andrew Jassy owns about 0.02%. Institutional investors collectively hold approximately 61.68% of Amazon's shares, with Vanguard Group, BlackRock Inc., and State Street Corp being the largest institutional owners.