Amazon undervalued at 34.2x earnings with 24% ad growth, $4B savings

SPOTSPOT

Amazon gained only 5% in 2025, trailing its Magnificent Seven peers, while its stock trades at 34.2x earnings, below its five-year average and cheaper than most rivals. Investments in robotics (40 centers saving up to $4 billion), a 24%-growing ad business, and AWS’s 65% income share underpin expected resurgence.

Sources

YFF