Amazon stock has dropped about 10.7% over the past week, amid concerns about slowing AWS growth, stiffer competition in the cloud, and renewed anxiety over the “AI bubble.” Naturally, you must be wondering: Is this a short-term setback, or is it hinting at deeper issues?
Consider this: Amazon is a $2.4 trillion giant generating $670 billion in revenue, with a recent share price of nearly $222. Its fundamentals look strong—healthy revenue growth, robust operating margins, exceptional liquidity, and relatively moderate leverage. So why has it been so volatile? We’ll delve into it. But, if you seek an upside with less volatility than holding an individual stock like AMZN, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell 2000, and S&P MidCap indexes—and has achieved returns exceeding 105% since its inception. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk…
