Amazon Defies Gravity: Why AMZN Laughs at Recession Fears

While traditional retailers sweat over inflation and consumer pullbacks, Amazon’s fortress balance sheet and cloud cash cow let it yawn through economic storms.

The everything store now runs on autopilot—AWS margins cover retail stumbles, Prime locks in wallets, and that dystopian logistics network crushes competitors still playing brick-and-mortar catch-up.

Wall Street analysts clutching their pearls? Please. Bezos built this empire on cyclical downturns—every ’crisis’ just clears more shelf space for the Everything Store.

Amazon Leads in Several Sectors That Could Keep Profits High

Amazon has put much more time, resources, and money towards improving AWS and making it a software giant. As a result, AWS has become a leader in cloud computing, an industry that continues to grow worldwide. The best part, there is the belief that this industry won’t be as heavily impacted by tariffs as Amazon’s e-commerce wing. Thus, the majority of AMZN’s operating profits won’t be hit as hard by US tariff threats.

Advertising also remains a big player for Amazon (AMZN) and its profits. Advertising services have grown to become a large chunk of Amazon’s revenue picture, making up 15% of Amazon’s total revenue in Q4. While an exact number isn’t released, the percentage continues to reflect healthy gains, which are not expected to slow even in an economic downturn.

Furthermore, there is still an ongoing AI arms race, which needs computing power from data centers to train and run these models. As Amazon continues to invest in AI development and its data centers, it is working to ensure its data center buildout doesn’t slow down.

Amazon is slated to release its latest earnings report this week on May 1. A positive earnings report is expected, and it could send AMZN stock towards $200 if all goes well. At press time, AMZN is trading at just over $180 per share.