What's Going on With Amazon Stock? | AMZN STock Deep Dive Part 1

Parkev Tatevosian, CFA•Aug 3, 2026

Summary

Parkev provides a deep dive into Amazon's recent quarterly success, noting that the company exceeded expectations with revenue surpassing $200 billion and operating income jumping 43% to $27.5 billion. Parkev emphasizes that the AWS segment is experiencing significant acceleration, marking its fifth consecutive quarter of faster growth and reaching an annualized revenue run rate of $170 billion with a massive backlog of nearly $500 billion.

AMZN: Parkev highlights the company's proprietary chip business, including the Graviton CPU and Trainium chips, which are currently generating an annual revenue run rate of over $25 billion and growing at triple-digit rates. Parkev notes that these proprietary designs provide a competitive advantage by offering better price-performance compared to standard options. Parkev believes this segment is crucial as the industry shifts toward more complex AI workloads.

AMZN: Parkev explains that the shift toward 'agentic AI' is a primary catalyst for future growth, as it offers enterprises the ability to automate tasks and achieve significant labor cost savings from a global pool of over $10 trillion in labor spending. Parkev argues that even a small percentage of labor replacement represents a massive revenue opportunity for Amazon's infrastructure. This potential remains robust even in the face of macroeconomic headwinds.

AMZN: Parkev points out that Amazon's AWS remains the leader in cloud services, and its ability to grow a business of this scale at 36.7% year-over-year is a phenomenal achievement. Parkev asserts that the capital expenditures in AI are clearly yielding results, as evidenced by the triple-digit growth in AI-related revenue. This makes the stock one of Parkev's top picks in the current market.

Mentioned Stocks

AMZN

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev identifies Amazon as one of the best stocks to buy right now due to its accelerating AWS revenue growth, which reached 36.7% in the latest quarter. Parkev notes that the company's proprietary chips and AI revenue run rate are both over $25 billion and growing triple digits, providing a strong competitive advantage. Parkev believes the labor-saving potential of AI, which targets trillions in global labor spending, will continue to drive demand for Amazon's infrastructure regardless of macroeconomic headwinds.

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