What's Wrong With Amazon Stock? Here's the Honest Answer.
Yahoo Finance ·
Amazon ( AMZN -0.06% ) stock has rebounded this year, and it's up roughly the same as the S&P 500 . However, it's trading at it lowest P/E ratio ever, at only 21 times trailing-12-month earnings. Why is the market pricing it so low? Here's my honest answer. Amazon's stock started trailing the market after it announced that it was increasing its capital expenditures (capex) last year. Spending continues to rise, and management expects to spend $220 billion in 2026 alone. The market has gotten on board with the spending after seeing some early results. In the 2026 second quarter, for example, revenue from cloud business Amazon Web Services (AWS) increased nearly 37% year over year, the highest level in 18 quarters.
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