Did you know that Amazon (AMZN 1.49%) stock is up only 34% cumulatively over the last five years? That’s right, the technology giant has severely underperformed the stock market indexes, such as the S&P 500, which has produced a 78% total return over the same time frame.
Amazon’s stock is sputtering because of Wall Street’s skepticism about its heavy investments in artificial intelligence (AI) infrastructure and what that will mean for future cash flows.
At a generational crossroads, is Amazon stock a good buy for long-term investors? Or is it a value trap whose business is over the hill?
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Uncertain return on investment
As one of the bedrocks of cloud computing infrastructure, Amazon Web Services (AWS) is facing a significant surge in customer demand, including from Anthropic, which is buying billions of dollars’ worth of compute annually from the company. AWS revenue growth accelerated to 24% year over year last quarter, despite generating around $129…
https://www.fool.com/investing/2026/03/24/amazon-stock-at-a-crossroads-generational-buy-or-m/
