Analysts Expect Growth at Amazon to ‘Accelerate.’ Does That Make AMZN Stock a Buy Now?

Core Viewpoint - Amazon's stock has shown resilience despite earlier underperformance, particularly after a strong third-quarter earnings report that reminded investors of its profitability potential [1][7]. Company Overview - Amazon, headquartered in Seattle, operates the world's leading e-commerce platform, having evolved from an online bookseller in 1995 to a comprehensive marketplace offering a wide range of products [4]. - The company is also a major player in cloud computing, with Amazon Web Services (AWS) holding a 30% market share, making it the largest cloud platform, surpassing Microsoft Azure and Google Cloud [5]. Recent Performance - Following the third-quarter earnings report, Amazon's stock rose by 9%, bringing its year-to-date gains to 11%, outperforming competitors like Apple, Meta Platforms, and Tesla, although still lagging behind the Nasdaq Composite [2]. - Over the past year, Amazon's shares have increased by 17.7%, but its year-to-date performance has been affected by trade policies and tariffs, with the Nasdaq Composite up 22% during the same period [5]. Financial Metrics - Amazon's price-to-earnings ratio stands at 35.3, which may seem high, but when compared to its five-year average of 75, it appears to be fairly valued [6]. Future Outlook - Analysts expect AWS to accelerate growth in the coming years, indicating a positive outlook for Amazon's future performance [2].