Assessing Amazon (AMZN)’s Valuation After Recent Modest Share Price Gains

Amazon.com (AMZN) has quietly added about 2% over the past month, even as the stock has slipped slightly over the past 3 months, leaving investors reassessing where it fits in their portfolios.

See our latest analysis for Amazon.com.

The latest share price of $227.35 caps a steady year to date share price return, while the standout figure is Amazon.com’s 3 year total shareholder return of 166.69%, suggesting that long term momentum remains firmly intact.

If Amazon.com’s trajectory has you thinking about where growth and innovation go next, it is a great time to explore high growth tech and AI stocks as potential complementary ideas.

With earnings climbing faster than revenue, margins expanding, and the share price still sitting at a material discount to analyst targets, investors face a key question: Is Amazon.com a rare bargain, or is future growth already fully priced in?

Most Popular Narrative: 3.2% Undervalued

With Amazon.com closing at $227.35 against a narrative fair value of $234.75, the gap is modest but directionally bullish on long term upside.

Overall I was very impressed from the call and feel very good about the companies long term future. The only two negatives I took from it was AWS not growing to revenue expectations and then also during the Q and A they were asked about AI innovation and so on, and they never really never answered the questions and were just very vague. However they have so many pipeline projects that if they are also able to launch successfully I feel very good that Amazon will continue to destroy the market.

Read the complete narrative.

According to Zwfis, this narrative leans on robust earnings growth, expanding margins and a premium future profit multiple that assumes Amazon can keep compounding at scale.

Result: Fair Value of $234.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing AWS growth and intensifying cloud competition could challenge the bullish case if Amazon struggles to convert heavy AI and CapEx investments into returns.

Find out about the key risks to this Amazon.com narrative.

Build Your Own Amazon.com Narrative

If you see the outlook differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes: Do it your way.

A great starting point for your Amazon.com research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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