Is AMZN a good stock to buy? We came across a bullish thesis on Amazon.com, Inc. on r/ValueInvesting by _The_Silent_Investor. In this article, we will summarize the bulls’ thesis on AMZN. Amazon.com, Inc.’s share was trading at $246.03 as of June 5th. AMZN’s trailing and forward P/E were 31.60 and 31.15 respectively according to Yahoo Finance.
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Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. AMZN delivered a strong first quarter of 2026, reinforcing the view that the company remains one of the primary beneficiaries of the ongoing digital and artificial intelligence transformation. Revenue increased 17% year-over-year to $181 billion, while operating margin expanded to a record 13.1%, highlighting Amazon’s ability to grow efficiently across its diverse business segments.
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Amazon Web Services (AWS) continues to be the company’s most important growth engine, operating at an annualized revenue run rate approaching $150 billion and growing 28% year-over-year. Management also noted that its AI-related business has already surpassed a $15 billion run rate within just three years, underscoring the rapid adoption of AI infrastructure and services. Beyond cloud computing, Amazon has established itself as one of the world’s largest operators of data center semiconductors, with its custom silicon business exceeding a $20 billion annual run rate and growing at triple-digit rates, creating another powerful competitive advantage.
The retail segment also demonstrated renewed strength, with units sold rising 15%, the fastest pace since the pandemic period, indicating healthy consumer demand and continued ecosystem expansion. While capital expenditures reached $147 billion over the last twelve months, nearly matching operating cash flow of $148 billion, management views these investments as essential to supporting future growth and generating attractive long-term returns once the infrastructure becomes fully operational.
Additional upside could come from Project Leo, Amazon’s satellite broadband initiative, where more than 20 launches are planned in 2026 and management believes the opportunity could evolve into a multi-billion-dollar business. Although the stock trades at approximately 36x expected 2026 NOPAT, the valuation reflects confidence in Amazon’s leadership across cloud computing, AI infrastructure, custom silicon, and emerging growth platforms, positioning the company to potentially capture a disproportionate share of the ongoing technological transition.
Previously, we covered a bullish thesis on Amazon.com, Inc. (AMZN) by FluentInQuality in May 2025, which highlighted the company’s dominant ecosystem spanning AWS, advertising, logistics, subscriptions, and e-commerce, supported by powerful network effects and long-term compounding potential. AMZN’s stock price has appreciated by approximately 17.92% since our coverage. _The_Silent_Investor shares a similar view but emphasizes accelerating AI-driven growth, record profitability, substantial infrastructure investments, and potential upside from the company’s satellite broadband initiative.
Amazon.com, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 353 hedge fund portfolios held AMZN at the end of the first quarter which was 381 in the previous quarter. While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
