Amazon shares were down 15% from their August record high as of last Friday's close, even though third-quarter results reported on Oct. 29 were strong, with AWS revenue hitting a record $45.9 billion, up 39% year over year. CEO Andy Jassy forecast AWS revenue growth of more than 40% in both 2027 and 2028 and said it could become a trillion-dollar revenue business within five to 10 years, versus a current annual run-rate of $184 billion. AI services, including Amazon's own Graviton and Trainium chips and the Bedrock platform, are the main growth driver, and AWS's order backlog reached $578 billion. On valuation, the stock trades at a P/E of 19.4 versus 29.9 for the Nasdaq-100, but over $68 billion in non-operating gains from its Anthropic investment, together with analysts' 2027 EPS forecast of $10.58, lift the forward P/E to 22.8; the author still considers this valuation very attractive.
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AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/03/2026 | 250.74 |
| Change that session | +2.08% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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