• In recent days, Amazon and its partners have expanded AI, cloud, healthcare, and retail offerings, from AWS-powered agentic AI deals and Ring’s new Fire Watch feature to Amazon Pharmacy’s rollout of Novo Nordisk’s Wegovy pill and the planned opening of a Walmart-style big-box store near Chicago.
• These moves highlight how Amazon is deepening its role in critical infrastructure and consumer services, spanning data centers, autonomous vehicles, personalized marketing, and weight-loss treatments, while simultaneously facing an ongoing price-gouging lawsuit over pandemic-era essentials that could test its consumer trust and legal risk management.
• We’ll now examine how Amazon Pharmacy’s addition of the Wegovy pill and related healthcare expansion could influence Amazon’s broader investment narrative.

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Amazon.com Investment Narrative Recap

To own Amazon, you generally need to believe it can keep turning its scale in cloud, AI, logistics, and consumer services into growing cash flows while managing rising costs and regulation. Amazon Pharmacy’s rollout of Novo Nordisk’s Wegovy pill supports the healthcare and Prime ecosystem catalyst, but does not materially change the near term focus on AWS capital intensity as a key upside driver, or on legal and regulatory challenges as a major risk.

Among the latest announcements, Amazon backed Anthropic’s launch of Claude for Healthcare is especially relevant. It underscores how Amazon is positioning at the intersection of cloud, AI, and healthcare infrastructure, reinforcing the idea that AI driven workloads can deepen AWS demand while Amazon extends its reach into higher value, data rich services that may support long term margin resilience.

Yet behind this expanding AI and healthcare footprint, investors should still pay close attention to AWS’s heavy data center and custom chip spend, because…

Read the full narrative on Amazon.com (it’s free!)

Amazon.com’s narrative projects $905.9 billion revenue and $111.9 billion earnings by 2028. This requires 10.6% yearly revenue growth and a $41.3 billion earnings increase from $70.6 billion.

Uncover how Amazon.com’s forecasts yield a $295.51 fair value, a 20% upside to its current price.

Exploring Other Perspectives

120 members of the Simply Wall St Community currently see Amazon’s fair value between US$208 and US$450, reflecting a very broad spread of views. Against that backdrop, AWS’s rising capital intensity and competitive pressure could influence how these different expectations around the company’s future profitability and scale play out over time.

Explore 120 other fair value estimates on Amazon.com – why the stock might be worth 16% less than the current price!

Build Your Own Amazon.com Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amazon.com research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Amazon.com research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Amazon.com’s overall financial health at a glance.

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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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