Amazon's stock is undervalued with potential for significant growth potential, positive.

From Nasdaq: 2025-07-02 06:30:00

Market volatility is a part of investing, but holding growth stocks can lead to wealth. Regardless of the investment amount, buying shares regularly in growing companies is a smart move for financial security. Two stocks with potential for long-term returns are highlighted.

Amazon’s stock has doubled since 2022’s market low, with a 58% increase in the last five years despite a 400% rise in net income. The company’s use of robots in its fulfillment network could boost margins and is undervalued in terms of stock valuation. Operating cash flow has increased 15% year over year.

Amazon’s investment in AI-driven robots is set to revolutionize its operations, potentially saving over $10 billion by 2030. The company’s stock is trading at a low price-to-CFO multiple, suggesting it is undervalued. With room to lower costs and improve margins, Amazon offers significant growth potential for investors.

Roku, a leading digital entertainment platform, is positioned to capture a share of digital ad spending shifting to streaming. The company’s platform revenue grew 17% in the first quarter, outpacing the over-the-top ad market. With multiple revenue streams and a growing user base, Roku’s stock is undervalued compared to its long-term growth potential.

Investing in Amazon right now may not be the best choice, according to the Motley Fool Stock Advisor team. They have identified 10 other stocks with potential for significant returns. The team’s past recommendations have outperformed the market, with returns as high as 1,069%. Don’t miss out on the latest top stock picks by joining Stock Advisor.



Read more at Nasdaq: 2 Unstoppable Stocks to Buy With Great Upside Potential