Is This a Rare Buying Opportunity for Amazon Stock? | The Motley Fool

Is This a Rare Buying Opportunity for Amazon Stock? | The Motley Fool

Amazon stock might be the biggest bargain of the new year.

Amazon (AMZN 1.87%) has been a reliable long-term performer, but the growth stock didn’t have a spectacular 2025. The growth stock only gained 5% despite strong financial results throughout the year, and this mismatch makes Amazon look promising.

It has made great strides in e-commerce, online advertising, cloud computing, and artificial intelligence (AI), four industries that are poised for long-term growth. That’s enough to warrant a closer look, and when you dig into recent results, Amazon’s stock seems undervalued at current levels.

Online ads can boost margins

Image source: Getty Images.

Amazon’s margins have received a massive boost in recent years as its business diversifies beyond online retail. While Amazon Web Services has taken center stage in the company’s long-term plans, investors should also consider the growth in Amazon’s online advertising segment.

That part of the business was up by 24% year over year in…

https://www.fool.com/investing/2026/01/04/is-this-a-rare-buying-opportunity-for-amzn-stock/