Amazon Has Been Lagging the S&P 500 in 2026. This Is the Only Reason I'd Need to Buy the Stock in August Without Hesitation.

Amazon stock is trading at a P/E ratio of 21, its lowest valuation in over a decade, making it an attractive buy despite lagging the S&P 500 year-to-date. The company's massive $220 billion AI capex investment is paying off with strong Q2 earnings, including 37% revenue growth in AWS and 243% net income increase. With a $496 billion contract backlog and 97% analyst buy ratings, Wall Street sees 27% upside potential.