Should You Avoid Amazon Stock, or Is This a Once-in-a-Decade Buying Opportunity?
The Motley Fool
by newsfeedback@fool.com (Brett Schafer)February 24, 2026
AI-Generated Deep Dive Summary
Amazon stock has lagged behind broader market indices over the past five years, despite the company's continued growth. While Amazon has seen impressive expansion, its cumulative return of 23% trails far behind the S&P 500's 88% gain during the same period. Investors are concerned about the company's ability to compete in AI, its hefty capital expenditure plans, and the lack of profitability in key segments like e-commerce and retail.
Amazon's financial health remains strong, with its consolidated results indicating sustained popularity and dominance in critical areas such as cloud services (AWS) and other technology-driven sectors. However, these concerns have created uncertainty among investors, leading to a cautious approach toward Amazon stock. Wall Street is particularly nervous about the company's large capital expenditures, which are necessary for maintaining its competitive edge but come at a significant cost.
Despite these challenges, some argue that Amazon could present a once-in-a-decade buying opportunity. If the company successfully navigates its current hurdles—such as improving profitability in underperforming areas and managing its capital expenditure plans effectively—it could unlock substantial long-term value for investors. The article suggests that while the path ahead is uncertain, the potential rewards make Amazon stock worth considering for patient, long-term investors.
For readers interested in finance, this debate highlights the importance of evaluating a company's growth potential against market performance and investor sentiment. Understanding these dynamics can help investors make informed decisions about whether to hold, buy, or avoid Amazon stock in the current market environment.
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Originally published on The Motley Fool on 2/24/2026