Amazon: Underperforming Magnificent Seven Stock Could Be a Steal
This financial analysis article from The Motley Fool argues that Amazon (NASDAQ: AMZN) is a compelling investment despite underperforming the broader market in 2026. While the Magnificent Seven tech stocks have faced headwinds due to investor concerns about high AI spending, Amazon stands out for its relatively modest valuation (30x trailing earnings) and diverse growth opportunities. The article highlights Amazon's AI initiatives including a generative AI shopping assistant, its Zoox robotaxi subsidiary operating in multiple cities, and potential sales of Trainium AI chips. With $91 billion in trailing 12-month profit and a stock up only 7% year-to-date versus the S&P 500's 10% gain, the author positions Amazon as a long-term portfolio pillar with less risk than speculative AI plays.
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Amazon: Underperforming Magnificent Seven Stock Could Be a Steal
This financial analysis article from The Motley Fool argues that Amazon (NASDAQ: AMZN) is a compelling investment despite underperforming the broader market in 2026. While the Magnificent Seven tech stocks have faced headwinds due to investor concerns about high AI spending, Amazon stands out for its relatively modest valuation (30x trailing earnings) and diverse growth opportunities. The article highlights Amazon's AI initiatives including a generative AI shopping assistant, its Zoox robotaxi subsidiary operating in multiple cities, and potential sales of Trainium AI chips. With $91 billion in trailing 12-month profit and a stock up only 7% year-to-date versus the S&P 500's 10% gain, the author positions Amazon as a long-term portfolio pillar with less risk than speculative AI plays.
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