Amazon Stock Sell-Off: Should You Buy the Dip?

From Nasdaq: 2025-04-20 07:55:00

Amazon’s stock is down nearly 30% off its highs, making it a rare opportunity to buy. With a P/E ratio of 31 and forward P/E of 27, it’s trading at one of its cheapest valuations. Amazon’s aggressive spending on investments has turned it into the largest e-commerce marketplace and cloud computing company globally.

Investing in Amazon means getting two market-leading businesses: e-commerce and logistics, and Amazon Web Services (AWS) cloud computing. These businesses are driving strong revenue growth and operating leverage, supported by AI technology. Amazon’s advertising business and AWS are key revenue drivers, positioning the company for long-term success despite potential short-term disruptions from tariffs.

Considering Amazon’s growth potential and market-leading position, it’s a compelling long-term investment opportunity. The Motley Fool Stock Advisor team has identified 10 top stocks for investors, excluding Amazon. Historically, their picks have outperformed the market significantly, making it worth exploring their latest recommendations. Don’t miss out on potential monster returns by overlooking other strong investment options.



Read more at Nasdaq: Amazon Stock Sell-Off: Should You Buy the Dip?