Amazon finally a buy? Shares fall, risks remain

Retailing giant grows far beyond its eCommerce roots, with heavy Al investments

- BY JUSTIN VARGHESE

Amazon isn’t just a retail powerhouse anymore. From cloud computing with Amazon Web Services (AWS) to digital advertising, streaming, audiobooks, music, pharmacy, and even groceries through Whole Foods, the company has expanded far beyond its eCommerce roots.

For years, the stock was widely regarded as a must-own business at a price most investors couldn't justify. But with recent market moves, that question is back on the table: Is Amazon finally reasonably priced now?

Stock volatility

After posting its Q2-2025 results, Amazon shares dropped almost 10 per cent in two days, recovering slightly but still down roughly 5 per cent since the earnings release. Investors seem cautious, despite the company reporting strong operating income growth outpacing revenue gains.