Research Insights on Amazon, Oracle, and Merck

Research Daily

A synopsis of major stock analyses is featured today, including new reports on 16 notable companies, among them Amazon.com, Inc. (AMZN), Oracle Corp. (ORCL), and Merck & Co., Inc. (MRK).

Amazon's Growth Amid Competition

Amazon.com has experienced a 4.1% increase in shares over the last year, although this trails the overall growth of the Zacks Internet - Commerce industry by 11.3%. The company's revenue growth is significantly fueled by its Prime membership and Amazon Web Services (AWS). The expansion of AWS's services and the increasing pace of adoption are strong contributors to its success. Additionally, the implementation of ultrafast delivery options and an expanding content library are positive factors.

Amazon has also strengthened its relationships with third-party sellers. Its advertising revenue and expanding global presence are encouraging signs. The company is also making strides in grocery, pharmacy, healthcare, and autonomous driving sectors. Furthermore, advancements in generative AI are pivotal to its future. Net sales are projected to grow by 8.6% in 2025.

However, Amazon has revised its forecast for the first quarter downwards, citing foreign exchange challenges and the lack of an extra Leap Year Day as potential growth inhibitors.

Oracle's Cloud Strategy

Oracle's stock has outperformed the Zacks Computer - Software industry by 13.8% compared to a 6.2% drop in the sector over the past year. Despite a mixed performance in fiscal Q3 2025 earnings and revenues—both of which fell short of estimates—the growth in its Cloud Infrastructure segment remains robust. Winning contracts from AI-centric startups has helped drive revenue.

Oracle's ongoing investment in cloud infrastructure positions it advantageously in the competitive software landscape. Partnerships such as Oracle Database@AWS and Oracle Database@Google add to its momentum. Additionally, Oracle's Gen 2 Cloud is a key player in attracting AI clients, supported by share buybacks and a solid dividend policy. Analysts predict a 7.7% rise in net sales for fiscal 2025 versus fiscal 2024, although increased spending on product enhancements may constrain margin growth.

Merck's Keytruda Focus

Merck investors have seen a significant decline, with shares down 29.7% compared to a 4.7% dip in the Zacks Large Cap Pharmaceuticals industry in the last year. The company faces heightened competition in its diabetes franchise and ongoing issues regarding Gardasil sales in China, raising concerns about its market position. Moreover, upcoming competition and the impending loss of exclusivity for the blockbuster drug Keytruda heighten risks.

Despite these challenges, sales from Keytruda are expected to remain robust until it loses patent protection. As the first quarter results approach, estimates remain stable. Merck’s positive track record of earnings surprises in recent quarters brings some optimism. Keytruda, in addition to new product launches and label expansions, continues to boost Merck’s sales performance. The company's pipeline in cancer treatment remains robust, while the animal health division contributes positively as well.

In summary, today’s reports emphasize the potential and challenges faced by these major stocks, providing crucial insights for investors.

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