Meta Wants In on the Cloud. Is Amazon Stock Still a Buy?

Meta is reportedly building a cloud computing service to compete with Amazon Web Services (AWS) by renting AI computing power. However, analysts believe AWS's dominance is secure due to its established enterprise relationships, comprehensive software services, and deep customer base built since 2006. AWS grew revenue 28% year-over-year in Q1 2026 and generates nearly 60% of Amazon's operating income. Amazon stock remains a buy at $242 per share, as Meta's entry would likely only compete in the commodity computing capacity layer, not AWS's full-service platform.