What Makes Amazon (AMZN) an Attractive Long-Term Investment Opportunity?

Core Insights - Wedgewood Partners anticipates stronger market volatility in the coming years and has moderated its enthusiasm for investments [1] - The Wedgewood Composite returned -1.8% in Q4 2025, underperforming compared to the S&P 500's 2.7% and other indices [1] - The firm attributes its underperformance to poor stock selection, valuation corrections of past strong performers, and being underweight in AI stocks [1] Company Focus: Amazon.com, Inc. (NASDAQ:AMZN) - Amazon's stock closed at $239.12 on January 16, 2026, with a one-month return of 4.68% and a 52-week gain of 5.83% [2] - Amazon's market capitalization stands at $2.556 trillion [2] - The stock has lagged broader indices for the past five years, with valuation multiples reverting lower despite strong cash flow returns [3] - Current management is focused on managing capacity and costs, with an EV/EBITDA multiple around 13X for 2026, significantly below pre-COVID-19 levels [3] - Cash flow returns have rebounded to over 20%, driven by record margins, and the company is expected to grow at double-digit rates due to increased e-commerce penetration and improved capacity management [3]