Amazon.com (AMZN) shares have drifted a bit this week, trading near $238. Investors are watching how the company balances its recurring online retail business with fast-growing segments such as cloud services and advertising, which helps fuel its long-term performance.

See our latest analysis for Amazon.com.

Amazon’s share price has bounced back impressively this year, with a 1-month share price return of nearly 10% and year-to-date gains putting it well ahead of many peers. Although momentum paused this week, longer-term performance remains strong, as seen in the company’s exceptional 3-year total shareholder return of 150%.

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With Amazon’s recent surge and strong long-term returns, investors may wonder whether the stock is still undervalued with room to run, or if the market has already priced in the company’s future growth story.

According to Zwfis, Amazon’s narrative valuation sits just above the last close, reflecting confidence in current momentum from recent results. A difference in outlook emerges when the future pipeline is considered, prompting closer attention to the next section of the popular narrative.

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

Read the complete narrative.

Something unexpected powers this valuation view. Discover how a focus on two business areas and strategic reinvestment could rewrite Amazon’s growth trajectory. Curious which aspect of the forecast makes this narrative stand out? Uncover the story that’s catching attention among investors now.

Result: Fair Value of $234.75 (ABOUT RIGHT)

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

However, competition in cloud services and recent underperformance in AWS growth could present challenges to the current fair value narrative in the future.

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

While the multiples-based valuation points to a fair price, our SWS DCF model signals that Amazon may actually be trading at a discount. The DCF estimates fair value at $301.61, which is well above the current share price. Does this forecast signal a real opportunity, or is the market accounting for unseen risks?