Overview
A company that needs absolutely no introduction. What once started as a small online bookseller, founded by Jeff Bezos in 1994, has now expanded into a dominator of e-commerce (Amazon.com), digital streaming (Amazon Prime Video), cloud computing (Amazon Web Services), and audiobooks (Audible), to name a few notable sectors of its vast ecosystem. As of 2026, AMZN is focusing on long-term, consumer-centric growth and expanding its AI infrastructure for businesses through AWS.
A Good Time To Buy?
With AMZN up roughly 20% YTD, investors may be hesitant to get in, out of fear of a near-term pullback. However, AMZN seems to have no intention of slowing down. As of Q1 of 2026, the company continues to show strong growth with net sales increasing 17% YoY to $181.5 billion, bolstered heavily by a 28% YoY increase in AWS revenue ($37.6 billion). Regardless of investing style, the magnificent seven stock is a must-have in any investor's portfolio, yet recent business expansion makes it even more enticing.
Amazon Supply Chain Services
Last Monday (May 4th), Amazon announced it’s entering the logistics business with Amazon Supply Chain Services (ASCS), another acronym to add to the company's ever-expanding business empire. This growth means that the company is opening up its freight, distribution, fulfillment, and parcel shipping capabilities to all businesses, not just Amazon sellers (Amazon News). With ASCS, Amazon is further expanding into the $1.3 trillion 3PL (third-party logistics) market, putting itself into direct competition with UPS and FedEx. The company needs to monitor business complexity and potential risks as it implements ASCS alongside a $200 billion capital expenditure commitment to AI infrastructure (such as data centers and AI chips) in 2026. However, early adopters of the service, such as 3M, Procter & Gamble, and American Eagle Outfitters, suggest it's already attracting interest from large enterprises.
Why-to-Buy
On top of being a tried-and-true blue-chip stock, Amazon will continue to grow regardless of pullbacks or market turmoil. With the new announcement of ASCS, the company has an opportunity to snag a chunk of a trillion-dollar market, and with an already established logistics network, the chances of not capitalizing are slim. For its steady and consistent growth, growing AI infrastructure and cloud computing services, and its brand new introduction of ASCS, Amazon is CFR’s pick of the week!
