Amazon.com, Inc. (AMZN)
Amazon's operating cash flow soared 20% year over year in 2025. The company's cloud computing division saw its top-line growth accelerate, reaching an annualized revenue run rate of $142 billion.
Amazon (AMZN) is undervalued, with multiple high-growth engines—AWS, advertising, custom chips, robotics, and Zoox—driving long-term upside. AWS and advertising could generate over $240B in operating cash by 2030, supporting aggressive CapEx and future FCF growth. My base case valuation is $235/share, with a probability-weighted target of $255, reflecting robust margin expansion and diversified profit streams.
Expand NASDAQ: AMZN Amazon Today's Change (-3.89%) $-8.07 Current Price $199.47 Key Data Points Market Cap $2.2T Day's Range $199.14 - $206.62 52wk Range $161.38 - $258.60 Volume 2.6M Avg Vol 50M Gross Margin 50.29% Amazon (AMZN 3.89%), global e-commerce and cloud computing services provider, closed Friday at $199.34, down 4.02%. The stock moved lower during the regular session as reports tied the drop to worries about rising AI-related capital spending, tougher macro and regulatory headwinds, and slowing retail growth.
On March 27, 2026, energy shares gained while tech heavyweights dragged major U.S. benchmarks lower.
Amazon's and Microsoft's cloud businesses are booming. Nvidia supplies the hardware to many of these companies.
The Magnificent 7, comprising 33% of the S&P 500, has underperformed and now trades at its lowest forward PE premium in a decade. Despite slowing earnings growth and elevated capex, I see strong upside in Meta, Google, and Amazon, with Meta and Google at critical support levels. Microsoft, Nvidia, and Tesla face headwinds from capex, slowing growth, or declining estimates; I plan to trim Microsoft and avoid new positions in Apple, Nvidia, or Tesla.
AMZN ramps up logistics with faster delivery, lower costs and massive investment, sharpening its edge as rivals boost AI-driven supply chains.
Amazon.com (NASDAQ:AMZN | AMZN Price Prediction) stock is down roughly 3% in Friday trading, sliding from an opening price of $207.54 to around $200.
To be frank, the company's assets are an embarrassment of riches.
Amazon.com stock (NASDAQ: AMZN) is down 8% this year, as higher-than-expected capex guidance and other factors weigh on investor sentiment.