Zacks Investment Ideas feature highlights: Amazon, Microsoft and Alphabet

For Immediate ReleaseChicago, IL – April 30, 2025 – Today, Zacks Investment Ideas feature highlights Amazon AMZN, Microsoft MSFT and Alphabet GOOGL.Will Strong AWS Performance Boost Amazon's Q1 Earnings Report?Amazon’s first-quarter 2025 results, scheduled to be released on May 1, are likely to reflect gains from its strengthening cloud service offerings.Amazon Web Services (“AWS”) remains the crown jewel in Amazon's portfolio, with the Zacks Consensus Estimate projecting AWS sales of $29.31 billion for first-quarter 2025, indicating robust 17.1% year-over-year growth.See the Zacks Earnings Calendar to stay ahead of market-making news.This performance continues to solidify AWS' position as the market leader, competing effectively against Microsoft Azure and Alphabet-owned Google Cloud. Recent industry data confirms AWS' dominant market position, with the three top cloud providers for a whopping 68% of the global cloud market in the fourth quarter of 2024, according to new data from IT market research firm Synergy.AWS strengthened its global infrastructure in the first quarter with the launch of new regions in Thailand and Mexico, representing multi-billion-dollar investments that are expected to contribute significantly to each country's GDP. The Mexico (Central) Region launch marked a $5 billion investment commitment over 15 years, while the Thailand Region similarly demonstrated Amazon's confidence in emerging markets.Amazon.com, Inc. price-eps-surprise | Amazon.com, Inc. QuoteClick here to know how the company’s overall first-quarter performance is likely to have been.Strategic Collaborations of AWS Strengthen's AMZN's Position in Q1The first quarter saw AWS announce several high-profile strategic collaborations. Notable partnerships include the multi-year agreement with Fitch Group to leverage Amazon Q Developer generative AI technology, which reportedly improved developer productivity by approximately 20%. AWS also expanded its long-standing relationship with Pearson to accelerate AI-powered learning solutions that will serve millions of users globally.Other significant partnerships formed during the quarter include agreements with Proximus Group to provide global cloud infrastructure, Montefiore Health System for healthcare innovation, and Mitsubishi Electric for data center solutions and digital transformation initiatives. These partnerships demonstrate AWS' versatility across financial services, education, telecommunications, healthcare, and manufacturing sectors.Amazon’s AI Integration Drives Growth in Q1AWS continued to integrate AI capabilities throughout its service offerings in the first quarter. The quarter saw Amazon Ads bringing generative AI capabilities to Amazon Marketing Cloud with a new SQL Generator, enabling advertisers to develop insights faster using natural language. The company also made significant strides in implementing generative AI through Amazon Bedrock across various industries.The automotive sector emerged as a particularly strong growth area, with Honda leveraging AWS for transitioning to software-defined vehicles and improving EV charging experiences with generative AI. Similar collaborations with HERE Technologies and Valeo further demonstrate AWS' expanding footprint in the automotive space.Investment PerspectiveAs Amazon approaches its first-quarter 2025 earnings report, AWS' performance shows promising indicators with strong revenue growth projections and strategic expansion across multiple fronts. The continued investment in AI capabilities, strategic partnerships spanning diverse industries, and geographic expansion all position AWS to maintain its cloud dominance.However, investors should consider that while AWS remains a powerful growth engine, market expectations for continued cloud acceleration are already high. The substantial investments in new geographic regions and AI development may pressure near-term margins. These factors suggest that while AWS performance appears strong, investors might consider waiting for more clarity on profitability metrics and the return on these investments before increasing positions ahead of this Zacks Rank #3 (Hold) company’s earnings report. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks