Amazon’s stock (NASDAQ: AMZN) has underperformed the S&P 500 over the past five years, with a 30% rise in share price compared to the index’s 60% increase. Currently trading at approximately $200, Amazon’s diluted earnings per share (EPS) stands at $7.18, resulting in a price-to-earnings (P/E) multiple of less than 28, significantly lower than its historical average.
Despite its stock struggles this year largely attributed to macroeconomic factors, Amazon continues to pursue growth opportunities. The company generated nearly $78 billion in profit over the past four quarters and maintains a valuation of $2.1 trillion, bolstered by investments in faster delivery services, AI enhancements for Alexa, and expansions in its cloud and autonomous vehicle sectors.
