Amazon.com (AMZN) is making waves with its announcement of major corporate layoffs focused on its human resources division. The company aims to streamline operations for the next chapter of growth. These workforce changes are happening alongside the company’s $100 billion-plus investment in artificial intelligence and cloud infrastructure, a move that is catching the attention of both Wall Street and long-term investors.
See our latest analysis for Amazon.com.
Amazon has packed a lot into the past year, launching new AI-driven services, doubling down on its advertising and cloud strategy, and even expanding its footprint with collectibles and plant-based snacks. While the share price has dipped 2.1% year-to-date and seen some near-term swings, it’s the long-term story that stands out: Amazon has delivered a 15.4% total shareholder return over the past year and an impressive 87% return over three years, signaling that momentum around AI and operational shifts could be setting the stage for further growth.
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With Amazon cutting costs and making heavy bets on AI and cloud, yet trading at a noticeable discount to analyst price targets, the big question emerges: Is there real value left on the table, or is future growth already factored in?
At $215.57 per share, Amazon is trading well below the $234.75 fair value calculated in the most widely followed narrative. This highlights a gap that could signal opportunity for value-focused investors.
“Their E-commerce platform is the undisputed leader, especially with its robust options for customers and the scale of its logistics network. AWS is one of the best cloud services available to companies, particularly with a growing need for this industry as it continues to validate this segment of the business.”
Want the full story behind that bold valuation? This narrative’s future price depends on aggressive growth assumptions and operating leverage that could shift the balance. Discover what real numbers drive this target, and why some call it conservative despite recent turbulence. Peel back the layers and the story only gets more intriguing.
Result: Fair Value of $234.75 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, risks remain, including softer-than-expected AWS revenue growth and increasing cloud competition. Both of these factors could challenge this upbeat outlook.
Find out about the key risks to this Amazon.com narrative.
If these perspectives don’t quite fit your view, or you want to dig into the details yourself, crafting your own take on Amazon’s story takes just a few 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.
Smart investors always keep their options open. Don’t let overlooked opportunities slip past you when there are exciting ways to grow your portfolio right now.
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.
Companies discussed in this article include AMZN.
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