Amazon Stock Reaches New Highs
Amazon’s shares (NASDAQ: AMZN) hit an all-time high in November 2025, following a 25-year average annual gain of 24% and a remarkable three-year average gain of 40%. Despite a recent slowdown, with shares only increasing by about 5% in 2025, analysts suggest the stock remains a worthy investment.
Currently, Amazon’s forward-looking price-to-earnings (P/E) ratio stands at 28, significantly below its five-year average of 44, indicating potential undervaluation. However, its price-to-sales ratio of 3.6 is slightly above its five-year average of 3. Analysts emphasize the company’s strong growth in cloud computing and advertising as key factors for its long-term performance.
