Amazon reported strong Q4 results, with record sales of $213.38 billion, driven by growth in cloud, advertising, and retail segments. The company slightly missed earnings expectations and announced a massive $200 billion CapEx plan for 2026, leading to a 10% stock drop. However, AMZN is now trading at its cheapest forward P/E in a decade at 28X.

For fiscal 2025, Amazon’s annual sales exceeded $700 billion for the first time, reaching $716.92 billion, with adjusted EPS soaring 30% to $7.17. Q1 revenue guidance is between $173.5-$178.5 billion, showing 11-15% growth. Amazon’s ROIC stands at 16%, below the desired 20% but improving.

Despite a slight EPS miss and CapEx concerns, Amazon’s core business segments are accelerating, making it a potentially attractive investment opportunity. With AMZN stock trading at its lowest P/E valuation in a decade, this post-earnings dip could be a rare buying opportunity for long-term investors. AMZN currently has a Zacks Rank #2 (Buy).

Looking for potential investment opportunities? Check out Zacks’ 5 stocks set to double, handpicked by experts for +100% gains. These picks are flying under Wall Street’s radar, offering a ground-floor opportunity for investors. Get in on the action and potentially see significant returns.

Read more at Nasdaq: Buy the Dip in Amazon Stock After Mixed Q4 Results & CapEx Concerns?