Amazon Named Buy Candidate Before Q2 Despite P/E Above 30; MGM Drops Film
AMZN•Amazon is one of three Magnificent Seven stocks cited as buy candidates before July 2026, with fresh catalysts from AWS expansion and advertising growth despite its P/E remaining above 30. Amazon MGM Studios dropped rights to 'Artificial,' which Neon acquired, underscoring a strategic content shift in the studio’s film slate.
1. Analyst Buy Recommendations
Analysts cited Amazon among three Magnificent Seven stocks as buy candidates entering July 2026, highlighting AWS revenue growth from enterprise adoption and robust advertising unit performance as key catalysts ahead of the Q2 earnings release.
2. Valuation Overview
Amazon's forward price-to-earnings ratio sits above 30, surpassing its five-year average near 25 and exceeding the sector median, prompting debate over whether the current valuation adequately reflects near-term growth prospects.
3. Content Strategy Shift
Amazon MGM Studios elected not to exercise rights to the OpenAI-centric film 'Artificial,' which was subsequently acquired by Neon, indicating a tighter focus on select content investments and cost discipline within the studio division.
