Amazon.com (AMZN) grabbed headlines with a combination of strong third-quarter earnings and the announcement of its largest-ever round of corporate layoffs. The company posted higher revenue and profits, while also signaling a fresh drive for efficiency and cost control.

See our latest analysis for Amazon.com.

Amazon’s upbeat earnings come on the heels of a year marked by bold moves in AI, fresh cloud deals, and a sweeping round of corporate layoffs. While the share price briefly dipped 3.2% after the announcement, the overall 1-year total shareholder return sits at a hefty 19.6%, and gains have compounded impressively over the past three years. Investors appear to be weighing near-term cost pressures against Amazon’s long-term growth engine, with recent news hinting at momentum building rather than fading.

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With shares rallying after a year of strong growth and ambitious restructuring, the key question is whether Amazon’s current price still offers value to investors, or if the market has already priced in its future potential.

With the narrative’s fair value for Amazon.com set at $234.75, last close still sits below this target, hinting at untapped potential and the possibility of further price movement. According to user Zwfis, the price currently leaves the door open for upside, but depends on a bullish thesis built from a series of quantitative projections and business milestones.

“Their E-commerce platform is the undisputed leader, especially with its robust options for customers and the scale of its logistics network. AWS is one of the best cloud services available to companies. With a growing need for this industry, it continues to validate this segment of the business.”

Read the complete narrative.

You would not believe the growth assumptions and future profit margins driving this price target. The narrative’s fair value is powered by ambitious expectations for both sales and profits. Think Amazon’s AI and cloud bets could fuel a new earnings surge? Step inside the full narrative and see how its forecast connects those dots.

Result: Fair Value of $234.75 (UNDERVALUED)

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

However, ongoing challenges in cloud growth and unclear updates on AI strategy could quickly shift sentiment if Amazon does not deliver on expectations.

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