Amazon Margin Expansion From AWS Becomes Key Investment Catalyst

On May 26, fresh analysis positions Amazon's net income margin growth, led by AWS operating leverage plus advertising and emerging segments, as the dominant share-price driver. This builds on the May 25 call to accumulate AMZN and Costco during any market selloff amid historically high S&P 500 valuations. Heavy capex remains a near-term free-cash-flow headwind, yet analysts continue recommending dips be bought while monitoring quarterly margin trends. Earnings estimates show modest upward revisions, with Q2 EPS projected at $1.82 and revenue at $196.87 billion.