Amazon stock is trading at its lowest valuation ever as a public company, despite AI boom – AOL

Amazon (AMZN) is being left out of the renewed interest in owning AI stocks.

Nvidia (NVDA) is trading at a record high. Rival AMD (AMD) just hit a record high. Microsoft (MSFT) and Google (GOOG) have tacked on modest gains in the past month. Meta (META) shares have surged 23% on Muse AI agent fever.

Contrast those gains with Amazon, which is down 2.4% over the past month. In fact, at its current stock price of $251 and trailing price-to-earnings (P/E) ratio of 20x, Amazon is trading at its lowest valuation ever as a public company, the team at TrendSpider pointed out.

Amazon has the second-lowest trailing P/E ratio among the “Magnificent Seven” names. Only Alphabet trails, at 17.7 times forward earnings, per Yahoo Finance AlphaSpace data.

There are a couple of factors likely holding Amazon stock back right now.

For starters, in early September, the Federal Trade Commission (FTC) and 22 states filed a lawsuit alleging that Amazon’s advertising practices have overcharged its roughly…