Throughout the first four months of the year, volatility has been the name of the game for the…

Throughout the first four months of the year, volatility has been the name of the game for the US stock market. Although things shifted upward on Thursday, there is still a prevailing air of uncertainty. Despite that, traders should still believe in Amazon (AMZN), with two key reasons for investors to be bullish on the stock this year.

The e-commerce juggernaut has consistently positioned itself among the most promising companies in the world. Amid mega-cap stocks, it is among the most important of the Magnificent 7. Yet, there are reasons to think that it has a better chance than most to navigate the increased uncertainty of this year.

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Amazon Stock Gives Traders Two Key Reasons To Be Bullish This Year

On Thursday, the Dow Jones Industrial Average jumped around 500 points at the midpoint of the day. The big catalyst driving the increase was the arrival of a new trade deal between the US and the UK. Indeed, it created some clarity regarding increased tariff talks that would threaten the United States’ economy this year.

That has given Wall Street some reason to think things are going to turn around in the near future. However, there are some stocks that use their own sense of positivity to get them through the up-and-down year. Indeed, Amazon (AMZN) has given investors two reasons to be bullish for the worrisome 2025.

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Specifically, Amazon is set to benefit from its two greatest business dealings: cloud computing and advertising. The company has diversified away from being a simple online retailer or marketplace to being far more of a technology company. That is clearly seen in the dominance of Amazon Web Services (AWS).

Not only is AWS among the biggest reasons to be bullish on Amazon, but it is also among the best businesses in the world. Currently, it accounts for 58% of the company’s 2024 operating income despite being just 17% of total revenue.

Alternatively, its advertising revenue is quite impressive in the grand scheme of things. It boasts a Q4 revenue figure of $17 billion. That may not be large in the grand scheme of Amazon’s financials, but it is growing at double the rate of its e-commerce platform. With that growth rate and AWS dominating alongside surging demand, AMZN stock should be just fine by the time 2025 comes to an end.