Key insights
- Barclays reiterated an Overweight rating on Amazon (AMZN) due to strong growth in its India operations, with B2C revenue up 19% and AWS India revenue up 12%. Despite losses in Pay and B2B, overall India revenue growth accelerated. Significant future investments in India and the launch of the AWS Graviton5 chip for AI workloads suggest potential upside for AMZN, contributing a mild positive influence on US equities.
Investing.com - Barclays reiterated an Overweight rating and $330.00 price target on Amazon.com (NASDAQ:AMZN) stock following analysis of the company’s India operations.The $2.56 trillion retail giant trades at a P/E ratio of 28.51, with an attractive PEG ratio of 0.78. According to InvestingPro analysis, Amazon appears undervalued relative to its Fair Value—placing it among compelling opportunities on the Most Undervalued list. An InvestingPro tip reveals that 24 analysts have revised earnings upwards for the upcoming period. For deeper insights, investors can access Amazon’s comprehensive Pro Research Report, available for 1,400+ US equities.
Amazon India B2C revenue grew 19% excluding foreign exchange effects for the year ended March 2025, accelerating from 14% growth in fiscal 2024. Barclays estimates this performance indicates Amazon gained market share in India’s overall e-commerce industry last year.
AWS India generated approximately $2 billion in revenue, up 12% year-over-year, a slight acceleration from 10% growth the prior year. Amazon Pay and B2B operations declined in 2025.
Total revenue for Amazon’s India operations grew 11% excluding foreign exchange effects in fiscal 2025, up from 9% the prior year. Barclays estimates total gross merchandise value of approximately $25 billion, representing 15% growth excluding foreign exchange effects compared to 10% in 2024.
Operating income losses for Amazon’s India operations improved for the second consecutive year, approaching break-even with a negative 1.7% margin in 2025. Amazon has invested nearly $40 billion in India as of December 2025 and plans to invest an additional $35 billion through 2030.
In other recent news, Amazon announced the general availability of its AWS Graviton5 chip, which promises up to 25% better compute performance for AI workloads compared to previous generations. The new chip, featuring 192 cores per processor and reduced inter-core latency, is designed for tasks such as real-time reasoning and code generation. Additionally, Amazon has launched a less-than-truckload (LTL) freight service, now accessible to all businesses, allowing shipments to third-party warehouses, distribution centers, and retail partners across the United States. This expansion, driven by customer demand, marks a significant development from its previous limitation to inbound shipments to Amazon facilities. The LTL service, operational since 2019, has moved millions of pallets and serves a wide range of shipment sizes. Analysts at Raymond James have noted that this expansion could pressure the competitive landscape for existing public LTL carriers like Saia and Old Dominion Freight Line. The broader availability of Amazon’s freight service has already impacted the stock performance of several U.S. trucking companies.
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