Recent commentary on Amazon.com (AMZN) is centering on a pickup in its core engines, with Amazon Web Services, AI heavy digital advertising, and more efficient e-commerce operations renewing interest in the stock.

See our latest analysis for Amazon.com.

Despite the latest 1 day and 7 day share price declines, Amazon.com’s current share price of US$226.50 sits against a three year total shareholder return of about 159%, with momentum recently softer as investors weigh AI driven growth news against valuation and insider selling headlines.

If AI, cloud and e commerce are on your radar, this could be a good moment to widen your watchlist with high growth tech and AI stocks for more potential ideas beyond Amazon.

With Amazon now at US$226.50, a 3 year total shareholder return near 159%, solid reported revenue and net income growth, and a flagged intrinsic discount of about 40%, key questions arise: is there still a buying opportunity here, or is the market already pricing in future growth?

According to Zwfis, the narrative fair value of US$234.75 sits slightly above Amazon.com’s last close at US$226.50, framing the stock as modestly discounted in their view.

Before I get into my projections and what I took away from their recent earnings calls, here is my pros and cons to investing in AMZN. Bull:

Read the complete narrative.

Curious how an 8% discount rate, double digit revenue growth and a rich future earnings multiple come together? The narrative stitches these into a single fair value roadmap that challenges the current price. Want to see which profit assumptions do the heavy lifting in that US$234.75 figure?

Result: Fair Value of $234.75 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this storyline still depends on AWS growth holding up and on management turning heavy AI and infrastructure spending into profits rather than just higher costs.

Find out about the key risks to this Amazon.com narrative.

So far the focus has been on fair value estimates and narrative assumptions, but the current P/E of 31.7x adds a different twist. It sits well above the global multiline retail industry at 19.4x, yet slightly below peers at 33.4x and the fair ratio of 40.4x.

That mix points to a market that already prices in a premium business, but not all the way up to where the fair ratio suggests sentiment might change. This leaves investors weighing whether this premium looks more like valuation risk or potential room for a rerating.