Should You Buy Amazon Before 2026?

Core Viewpoint - Amazon is a dominant company with a strong market position and a significant opportunity for investors as its shares are currently trading 10% below their record high, making it an attractive buy before 2026 [1]. Group 1: Company Performance - Amazon's shares have increased by 579% over the past decade, indicating strong long-term growth [1]. - The current share price is $233.22, with a market capitalization of $2,493 billion [4][5]. - The stock is trading at a forward price-to-earnings ratio of 29, suggesting a reasonable valuation despite its historical performance [5]. Group 2: Competitive Advantages - Amazon possesses multiple durable competitive strengths, including a strong online marketplace that benefits from network effects [2]. - The company has significant switching costs for merchants and AWS customers, which discourages them from moving to competitors [2]. - Amazon's large scale provides a cost advantage, particularly in logistics, enabling fast and often free delivery [2]. - The brand name of Amazon is highly regarded, further solidifying its market position [2][3]. Group 3: Market Dynamics - The stock is currently 10% off its peak, prompting investor interest in buying the dip [1]. - The trading range for the day is between $230.22 and $233.28, with a 52-week range of $161.38 to $258.60 [4][5]. - The average trading volume is 48 million, with the current volume at 20 million [5].