Andy Jassy's Amazon Trades at $244. The Stock Is Down 11% From Its 52-Week-High, Despite AWS Growing 28% in Q1.
Amazon's stock is in correction territory despite record profitability and accelerating AWS growth. Is Wall Street overlooking one of the market's most compelling AI investment opportunities?
Overview
There is a puzzle in Amazon (NASDAQ: AMZN) shares right now. The stock sits around $244.41, down more than 11% from its 52-week high in May 2026. It has entered what is commonly called correction territory, and yet the business just posted some of its strongest numbers in years. When a stock falls while the company thrives, it usually pays to figure out which one the market has wrong.
Start with what is going right, because it is a lot. Amazon Web Services, the cloud division that drives most of the company's profit, grew 28% last quarter, its fastest pace in roughly 15 quarters, and its operating margin hit a record. The advertising business kept booming, and Amazon's custom AI chip operation, led by its Trainium processors, has scaled to a $20 billion annual revenue run rate. CEO Andy Jassy has said that overall profitability recently reached the highest level in the company's history. By almost any operational measure, Amazon is executing beautifully.
Amazon CEO Andy Jassy. Image source: Amazon.com Inc.
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Originally published at www.fool.com.