Amazon's Stock Has Rarely Been This Cheap. Here's Why 1 Analyst Thinks It Could Soar by More Than 50%.

Group 1 - The current stock market correction has led to Amazon's stock price dropping nearly 20% from its all-time high, making it one of the cheapest valuations based on its price-to-earnings (P/E) ratio in two decades [1][7] - Amazon's e-commerce platform remains the largest revenue source, with Q4 sales growing by 7% to $75.6 billion, but it is the slowest-growing segment and has low profit margins [2] - The advertising and Amazon Web Services (AWS) units are the primary profit drivers for Amazon, with Q4 advertising revenue rising 18$17.3 billion, indicating a highly profitable business [3][4] Group 2 - AWS had an operating margin of 37% in Q4, significantly higher than Amazon's overall operating margin of 11.3%, contributing 58% of the company's operating profits for the full year [5] - Even in the event of an economic downturn, AWS is expected to be less affected compared to consumer-focused units, making it a more stable investment [6] - Analyst Nat Schindler from Scotiabank set a 12-month price target of $306 for Amazon's stock, suggesting a potential gain of over 50% from the current price, indicating a favorable buying opportunity [9]