Amazon's stock becomes more appealing to investors

Amazon's share price has dropped recently, making it look more appealing to investors. Analysts believe the company's long-term earnings growth will support its valuation. Currently, Amazon trades at about 27 times its expected future earnings, which is notably lower than its historical average. Despite a decline in its stock over the year, Amazon has outperformed some tech indices. More than 95% of analysts recommend buying Amazon shares, as they anticipate significant growth in areas like e-commerce and cloud services. Brian White of Monness Crespi Hardt & Co. remains optimistic about the company's potential. However, Amazon faces challenges, such as tariffs and economic uncertainty affecting consumer spending. Its cloud business, Amazon Web Services, grew 19% but not as quickly as hoped. Investors are concerned about when Amazon's heavy investment in AI will yield results, creating hesitation in the market. Market experts indicate that while Amazon looks attractive now, broader economic uncertainties could hinder a rebound in tech stocks. Clearer economic signals will be crucial for a lasting recovery in stock prices.