Key Points
The e-commerce and AI giant has declined 10% since its summertime high.
Amazon is growing its sales faster than it has in five years. The bottom line is growing even faster.
The stock is trading for less than 25 times next year's analyst profit target. It's a high multiple, but not for Amazon.
Amazon's (NASDAQ: AMZN) fall sales event came and went last week. There could be one lingering Prime Big Deal Days opportunity worth exploring: Amazon stock itself.
Shares of the leading online retailer have declined 10% since peaking two months ago. Concerns about Amazon's surging capital expenditures in support of AI and a rotation out of consumer tech stocks have weighed on the bellwether's momentum. The downticks aren't a problem. They're an opportunity.
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It's time to go shopping
Amazon stock is slightly lagging the market in 2026, somewhat surprising given where it's at right now. The 20% in net sales it reported for its latest quarter was its strongest year-over-year jump since 2021. Amazon Web Services (AWS) -- its web-hosting business that is now accounting for a fifth of Amazon's revenue but three-fifths of its operating profit -- has been the key driver. That segment's revenue surged 37% in the second quarter, fueled by the AI boom.
It's not the only business that's accelerating at Amazon. The e-commerce business that put Amazon on the map three decades ago saw its North American sales rise 16% in its latest quarter. The bottom line is growing faster.
It's hard not to like Amazon after its recent pullback. Yes, it's spending a lot of money on AI. It also happens to be one of the biggest beneficiaries of the revolution, given AWS' growth. The early success of its own AI-powered conversational shopping assistant -- Rufus -- is also helping on the e-commerce end in a win-win way.
Paying less than 25 times next year's earnings isn't cheap for most stocks, but it's a bargain for Amazon. It has a strong moat in online retailing. AWS is a fast-growing cash cow. Amazon deserves a market premium. Today, you can ironically buy that premium at a discount. That's a sale. That's a Prime Big Deal Days sale that may not last long.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.