Buy Amazon Stock

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Buy Amazon Stock

The Ideal Opportunity To Buy Amazon Stock

According to various analysts, this is the ideal opportunity to buy the Amazon stock. The Amazon stock is trading at its lowest valuation multiple of the decade!

Right now, the stock market is worried about Amazon's spending plans. But this worry has lowered the stock price to such a level that it means the investors can now buy Amazon stock at a cheap rate.

Amazon's P/B Ratio Is 5.4

The P/E ratio of Amazon is 29, which is not that low. However, the P/E ratio is not the best indicator when it comes to finding the value of a business.

For example, Amazon reported its loss on the Rivian Automotive investment in 2022. At that time, the EPS of the Amazon turned negative, which also affected the P/E ratio.

But this was a one-time thing, and the P/E ratio turned back to normal once again. So, this tells us that P/E shouldn't be the only factor to consider when looking at a stock.

The book value of Amazon is very stable, and it was also very good when the company reported its Rivian loss in 2022. So, a better metric to gauge the value of Amazon stock is the P/B ratio.

The P/B ratio of Amazon stock is only 5.4, and that's the lowest level in the last 10 years. This alone tells us that the Amazon stock price is very undervalued right now.

When we look at the investors who made big money, most of them bought stocks when everyone was afraid, and no one was willing to touch the shares at all.

So, now's a time like this and a perfect opportunity to buy the Amazon stock. The price-to-book ratio is already at a decade's low, and we all know that Amazon is a very solid business.

The firm is already a big player in e-commerce, and its AWS service allows it to also benefit from the AI bandwagon.

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