Amazon’s Stock Valuation Drops to Historic Lows: A Buying Opportunity?
Amazon's stock, once trading at sky-high P/E ratios above 100, now sits at a modest 35—a stark contrast to its historical valuations. The e-commerce giant's market cap exceeds $2.4 trillion, making it the fifth-largest U.S. company, but growth has slowed. Revenue from its Core e-commerce business rose just 8% annually in the first half of 2025, a fraction of its former pace.
Investors face a dilemma: does this lower valuation signal a prime entry point, or does Amazon's decelerating growth justify caution? The stock's current multiple hovers NEAR its 30-average, suggesting relative affordability. Yet, the law of large numbers looms—scale inevitably dampens percentage gains.