Key Points
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Amazon hit an all-time high earlier this week, but it’s still trading at a reasonable 26 times next year’s earnings.
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Last week it posted its strongest top-line growth since the spring of 2021.
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With competitive advantages and a strong AI game, the company you know is one you might want to get to know even better.
- 10 stocks we like better than Amazon ›
Finding the right stock isn’t easy these days. You want a business that will thrive in the new normal of AI, but you also want a resilient business that can continue to deliver if the artificial intelligence boom starts to sputter.
You want a profitable and growing company. You want bullish momentum, but also a stock that is reasonably priced. If it’s not too much to ask, you would want it have a healthy protective moat and catalysts to thrive in most economic climates. Impossible? I’ve got one for your next $1,000. It won’t be a new name to you, but you might come away surprised at how well Amazon (NASDAQ: AMZN) checks off so many boxes.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
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Aisle be back
Amazon stock doesn’t need much of an introduction. It’s the country’s largest publicly traded company in terms of trailing revenue. Business is accelerating. Net sales rose 20% in its latest quarter, its strongest top-line jump in five years.
It’s not in danger of being made obsolete by AI banging on its door. It’s the one who knocks with its high-margin AWS cloud-hosting business. That business rose 37% in its latest quarter, generating more than half of Amazon’s operating profit. The e-commerce business that makes Amazon a household name is also improving. Revenue for its flagship business rose 16% in North America and 15% internationally.
Amazon has taken its gargantuan size to nail last-mile logistics, giving it a competitive advantage over just about anyone else that is farming out the bulk of their fulfillment elsewhere. You save money. Amazon makes money.
Despite its nine-figure budget this year to improve its AI dominance, Amazon is still delivering on the bottom line, too. It’s trading at a forward earnings multiple in the mid-20s, reasonable for a titan with so many competitive advantages. Did I mention that Amazon hit an all-time high earlier this week? It has earned those upticks, with enough of a valuation runway to continue aiming higher. It wasn’t that hard to find the right stock for your next $1,000.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!*
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*Stock Advisor returns as of August 7, 2026.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
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