The company's retail transaction data enables premium targeting capabilities, commanding higher ad rates than traditional streaming platforms.

The analyst is positive on Amazon shares given continued e-commerce leadership, improving profitability in retail, and expectation for acceleration in AWS growth in 4Q and into 2024.

US non-store retail sales were up +7% y/y in 2Q, a slight acceleration vs. 1Q – indicating favorable trends for AMZN’s NA retail growth. Meanwhile, AWS growth should come near +17% y/y in 2Q25E.