Amazon (AMZN) did not deliver the goods in 2021, at least for shareholders. Nonetheless, the stock remains one of the largest positions in the best of breed portfolio as it offers one of the more attractive risk / reward ratios on the market today. Historically, AMZN has been referred to as a bubble, or at least overrated. Both labels appear to be overlooking the potential impact of operational leverage as the company derives income from its aggressive growth investments. The stock appears reasonably valued based on the sum of its parts, and I will rate the stock as a buy in the long run.
Amazon stock price
AMZN stock lost more than a year after skyrocketing in 2020.
The underperformance is noteworthy when comparing the performances of Alphabet (GoogL) and Meta Platforms (FB) in 2021.
AMZN has made further financial progress during this time, so that the stagnating share price has resulted in lower valuations.