Amazon’s valuation is now at levels rarely seen since it went public in 1997. The stock trades around 30 times its estimated future earnings, which is lower than other retail competitors like Walmart and Costco companies that historically had lower multiples. The drop in valuation is largely due to Amazon’s focus on efficiency and cost-cutting, which included tens of thousands of employee layoffs from 2022 to 2024. Those dramatic moves helped boost the Magnificent 7 tech giant’s profitability.Despite the short-term turbulence, Wall Street remains overwhelmingly optimistic about Amazon’s e-commerce and cloud-computing businesses. Over 97 percent of analysts tracked by TipRanks recommend buying, and the stock trades about 37 percent below the average analyst price target. Is it time to buy Amazon stocks ?
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