Is Amazon Stock a Buy as Cloud Revenue Continues to Surge?

Amazon reported strong Q3 results with AWS cloud revenue surging 39% to $46 billion, its fastest growth in nearly five years. The company is investing heavily in AI infrastructure and custom chips, with AWS projected to grow 40% in 2027-2028 and potentially reach $1 trillion in revenue within 5-10 years. E-commerce operations showed impressive operating leverage with North American operating income jumping 80%. Despite strong fundamentals, Amazon stock has underperformed this year, trading at a forward P/E of 23x, which the analyst views as a buying opportunity.