Amazon.com (AMZN) is under pressure as its stock reacts to three forces: fresh EU scrutiny of Amazon Web Services, very heavy AI infrastructure spending, and a wider pullback in large tech and AI infrastructure stocks.

See our latest analysis for Amazon.com.

That backdrop has coincided with a weak near term run, with the share price down 9.1% over the last week and 10.5% over the past month. This comes even though the 1 year total shareholder return is 15.2% and about 99.3% over three years. Momentum has therefore cooled recently after a strong multi year stretch.

If you are watching how the AI build out is affecting other parts of the market, this is a useful moment to scan for potential opportunities across 48 AI infrastructure stocks

With Amazon now worth about US$2.7t and trading at US$246.03, alongside an intrinsic value model that implies roughly a 42% discount, the key question is whether this recent pullback signals mispricing or if markets are already factoring in years of AI driven growth.

Most Popular Narrative: 45.3% Undervalued

Compared with the last close at $246.03, the most followed narrative puts Amazon’s fair value at $450. That gap hinges on how investors view today’s heavy AI and infrastructure spending.

Amazon is sacrificing short-term margins to secure long-duration dominance in AI infrastructure, advertising, and automated commerce. These investments are already working, and margins are positioned to inflect upward by the end of 2026.

Read the complete narrative.

Want to see what sits behind that $450 figure? The narrative leans on faster profit growth, richer margins, and a very punchy future earnings multiple. The full story connects those assumptions across AWS, advertising, and higher efficiency retail.

Result: Fair Value of $450 (UNDERVALUED)

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

However, this bullish story can crack if AI infrastructure spending fails to translate into stronger profitability, or if fresh regulatory scrutiny meaningfully disrupts AWS growth and pricing power.

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

Next Steps

With sentiment clearly split between risks and rewards, it makes sense to move quickly and test the assumptions against your own expectations using 4 key rewards and 1 important warning sign.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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