Stocks, especially tech-heavy Nasdaq, experienced a selloff due to fears of overvaluation. Investors eye Amazon (AMZN) for potential buying opportunity after crushing Q3 expectations and securing a $38 billion partnership. Amazon’s expansion in cloud services, robotics, and streaming leads to record highs, with potential for continued growth or a pullback.

Amazon’s cloud services, AWS, drive e-commerce success with investments in AI, robotics, and streaming services. Despite slower growth than competitors, AWS sales reached $33 billion in Q3. Amazon’s North America and International e-commerce segments saw significant sales increases. Prime Video and advertising revenue also show promising growth.

Amazon projects record sales for Q4 and plans to double capacity by 2027. Capital expenditures are expected to reach a new peak in 2025, with a focus on AI, cloud services, and custom chips. Amazon’s valuation, with a forward P/S ratio of 3X and forward earnings of 35X, suggests potential for growth and a modest premium to the S&P 500.

Amazon stock presents a compelling opportunity for investors, with a Zacks Rank #2 following strong Q3 performance and strategic partnerships. The potential for continued growth and a history of high stock prices before the 20-1 split in 2022 make Amazon an attractive buy-the-dip target. Want the latest recommendations from Zacks Investment Research?

Read more at Nasdaq: Is Amazon Stock Primed to Keep Soaring or is a Pullback Ahead?