3 Reasons to Buy (and 2 Reasons to Sell) the Only "Ten Titans" Stock That's Underperforming the S&P 500 Over the Last 5 Years

Core Viewpoint - Amazon's stock has underperformed compared to its peers and the S&P 500, but it presents potential investment opportunities due to its valuation, leadership in cloud computing, and diversified business model [1][2]. Group 1: Investment Considerations - Valuation: Amazon's stock is trading at 33.1 times forward earnings, which is considered reasonable and less expensive than Apple, despite Amazon's faster growth [4][5]. - AWS Leadership: Amazon Web Services (AWS) is the leading player in cloud computing, with CEO Andy Jassy estimating that the second-largest competitor is about 65% the size of AWS, indicating a strong market position [6][8]. - Diversification: Beyond AWS, Amazon has a wide range of businesses including Amazon Prime, Prime Video, MGM Studios, and Whole Foods Market, which reduces dependency on any single market and provides multiple avenues for capital allocation [9].