Amazon's Stock Is Historically Cheap. Now Is Your Perfect Buying Opportunity
Major growth is expected for Amazon Web Services.
Overview
Amazon (NASDAQ: AMZN) and the phrase "cheap stock" have historically not been associated with each other. For the better part of two decades, Amazon has traded at meaningful premiums as it has grown its dominant e-commerce empire. Now, it's building another empire in a different space: cloud computing. It has been pouring major resources into expanding its artificial intelligence computing footprint, and plans to lay out a jaw-dropping $200 billion on data center capital expenditures in 2026.
The market isn't enthusiastic about that level of spending, which is why the stock isn't trading at its usual premium valuation. As a result, I think now is the perfect time to load up on Amazon shares, as this weaker short-term sentiment is exactly what long-term investors need to gain an upper hand.
Image source: The Motley Fool.
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Originally published at www.fool.com.