Amazon's stock (AMZN) is currently trading at $223.41 as of June 2025, about 8% below its February peak of $242.06. This dip misses a crucial shift: Amazon is quietly building a $100 billion AI-driven marketing and content empire that could reshape digital advertising and streaming. By integrating AI tools, AWS infrastructure, and key streaming partnerships, Amazon is positioned for significant growth. Here’s why marketers and investors should pay attention now.
AI Marketing: Amazon’s “Beast Mode” Strategy
Amazon’s “Beast Mode” initiatives represent a powerful but overlooked growth driver. With $100 billion invested in AI for 2025, Amazon is deploying tools like Alexa+ and Rufus to transform e-commerce and advertising.
Alexa+ is an AI voice assistant built on advanced language models, acting as a personalized shopping guide. It remembers user preferences and can handle complex queries such as, “What’s the best budget drone for aerial photography?” offering precise recommendations.
Rufus works directly inside the browser, refining search results using Amazon’s extensive product data combined with external sources. Together, Alexa+ and Rufus reduce friction in the shopping process, improving conversions and ad relevance.
Amazon’s ad revenue grew 19% year-over-year to $13.9 billion in Q1 2025. Yet, the stock trades at a price-to-earnings ratio of about 100, much higher than peers like Microsoft (28x) and Alphabet (25x). This suggests the market is undervaluing AI’s role in boosting ad efficiency.
By 2025, AI-driven tools such as Multi-Touch Attribution (MTA) and Long-Term Sales (LTS) metrics are helping advertisers optimize campaigns in real-time, increasing ROI and strengthening brand loyalty.
Streaming Media: Beast Games and AI-Driven Content
Amazon’s streaming strategy is equally impressive. Its collaboration with Beast Games, featuring YouTube star MrBeast, highlights its approach to combining viral content with Prime Video’s reach.
Beast Games attracted 50 million viewers in its first season, leveraging MrBeast’s 391 million YouTube subscribers to boost Prime Video subscriptions. The upcoming seasons promise even bigger stakes and broader appeal, helping Amazon monetize highly engaging content.
Amazon also uses AI to streamline content production. Tools like AI Creative Studio and Video Generator can produce 3D product demos or localized ads in minutes—significantly faster and cheaper than traditional methods.
AWS provides the cloud power behind this, processing vast amounts of content data. AI tools like Amazon Bedrock, powered by Anthropic’s Copilot, enhance content recommendations and ad targeting.
Greenbids Acquisition: A Key Piece in Amazon’s Ad Tech
In 2025, Amazon acquired Greenbids for $65 million—a move often overlooked but critical for ad tech dominance. Greenbids uses AI to optimize programmatic ad campaigns, improving efficiency and reducing carbon footprints.
Programmatic ads represent $140 billion in global spend but suffer from inefficiencies. Greenbids’ AI now integrates with Amazon’s Retail Ad Service, allowing brands to bid smarter and target audiences with precision.
Greenbids also complements AWS Advertising Solutions, which provide ad tech infrastructure to third-party retailers. This creates a comprehensive ad ecosystem where Amazon controls data, tools, and distribution—something few competitors match.
AWS: The Backbone of Amazon’s AI and Streaming Growth
AWS supports Amazon’s AI and streaming ambitions with powerful infrastructure.
- AI Infrastructure: AWS’s custom Trainium and Inferentia chips reduce training costs for large language models by 50%. Amazon SageMaker simplifies AI deployment, powering Alexa+, Greenbids, and more.
- Streaming Scalability: AWS’s global data centers ensure smooth streaming for live events like NFL and NBA games. This capability supports Amazon’s 11-year deal for over 65 regular-season games.
Despite AWS generating $29.3 billion in revenue in Q1 2025 (up 17% YoY) and expanding margins, this strength remains underappreciated in Amazon’s stock price.
Why Now Is the Time to Buy AMZN
Amazon’s stock undervalues the synergy between AI, ad tech, and streaming. Several upcoming events could act as catalysts:
- Q2 Earnings (July 31, 2025): Analysts expect $164.2 billion in revenue (+11% YoY) and ad revenue possibly topping $15 billion. A strong report could push the stock higher.
- Prime Day 2025: Extended to 96 hours, it’s projected to generate $21.4 billion in gross merchandise volume—a 60% increase year-over-year. Alexa+ will play a key role in delivering personalized deals.
- AWS and AI Expansion: Amazon’s $100 billion capital expenditure in 2025 will fuel AI copilot ecosystems and cloud services, raising barriers for competitors.
Risks include margin pressures and regulatory scrutiny, but Amazon’s 10.6% operating margin in Q2 shows resilience.
Bottom Line: AMZN Is a Buy at $223.41
Amazon’s stock currently trades below its peers and its potential. The February peak of $242.06 looks like a stepping stone, with Truist’s $250 price target implying 13% upside. Upcoming catalysts like Q2 earnings and Prime Day could accelerate this growth.
Amazon’s AI-driven marketing, streaming content strategy, and AWS-powered scalability create a competitive moat few can match. Marketers and investors who buy now stand to benefit from the next phase of tech-driven growth.
Recommendation: Buy AMZN at $223.41 with a 12-month target of $250. For those cautious about volatility, waiting for post-Q2 earnings momentum could be wise.
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