Investors Eye Amazon and Merck Amid Market Volatility

Investors should consider quality stocks like Amazon and Merck, despite their recent challenges. Both companies present long-term growth potential, reinforced by their competitive positions, even as short-term volatility looms.

Date: 09-05-2025

AI Rating: 7

Market Position and Long-Term Growth Potential

The analysis highlights two prominent stocks, Amazon (NASDAQ: AMZN) and Merck (NYSE: MRK), which, despite their current struggles, remain attractive for long-term investors. Amazon's recent quarterly results show a 9% year-over-year increase in net sales, demonstrating solid revenue growth. Its cloud division, Amazon Web Services (AWS), grew by 17% year-over-year, highlighting the company's operational strength and potential for future expansion.

On the other hand, Merck faces challenges with its key drug, Keytruda, facing competition from emerging products like ivonescimab. Although there are concerns about market share, Keytruda’s historical performance and its continuous updates keep Merck in a strong position.

Key Metrics Impacted

While the report does not directly provide specific Earnings Per Share (EPS) or Profit Margin figures, it effectively communicates growth trends through revenue and potential adjustments in future earnings as market conditions evolve. The strong performance of Amazon's AWS suggests healthy margins, while Merck's dividend yield of 3.9% compared to the S&P 500's 1.3% illustrates a commitment to returning value to shareholders, bolstering investor confidence in the short to medium term.

Long-term, the fact that Amazon is continuing to innovate and explore new market avenues, including its advertising and healthcare endeavors, positions it well for future growth. For Merck, even amidst competition, the ability to maintain its market share through established brand recognition remains vital.

In conclusion, both companies possess inherent strengths and growth opportunities that should appeal to long-term investors. Despite short-term volatility, their strategic positioning and operational capabilities present a strong argument for buying their stocks on dips, suggesting confidence in their future performances.

Stocks: AMZN MRK