Amazon, Uber, and Other Tech Stocks Appear Undervalued Amid AI and Iran Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 11 2026
0mins
Should l Buy AMZN?
Source: Barron's
Market Recovery Potential: Internet stocks have significant potential for recovery following declines attributed to two major concerns.
Analyst Insights: Evercore analysts have identified several internet stock names that may benefit from this recovery.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 200.950
Low
175.00
Averages
280.01
High
325.00
Current: 200.950
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amazon's AWS Sees Significant Revenue Growth
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% year-over-year revenue increase in its latest quarter, marking the fastest growth in 13 quarters, demonstrating its robust position with a 28% market share in the global cloud market despite competition from Microsoft and Google.
- Advertising Business Surge: Amazon's advertising revenue grew by 23% year-over-year to over $21.3 billion in the most recent quarter, leveraging its vast user data and traffic, making advertising a new profit growth driver and enhancing its competitive edge in the market.
- Automation Enhances Efficiency: With over 1 million robots deployed across more than 300 global facilities, Amazon has significantly improved its e-commerce profitability by speeding up order processing and reducing handling costs, although this has led to some layoffs, the long-term investment is strategically sound.
- Future Investment Plans: Amazon's $200 billion spending plan for data centers and AI hardware by 2026 has raised some investor concerns, but this strategy is expected to lay a solid foundation for long-term growth for AWS and the overall business.
See More
Massive Potential in Autonomous Driving Market
- Market Size Analysis: According to the Bureau of Transportation Statistics, light-duty vehicles in the U.S. travel over 3 trillion miles annually, with ride-sharing services charging $1 to $2 per mile, indicating that even with autonomous driving technology halving costs, robotaxis represent a trillion-dollar market, showcasing immense commercial potential.
- Investment Dynamics: Hedge fund billionaire Ken Griffin increased his holdings in Nvidia and Amazon in Q4, both of which are central to the development of autonomous driving technology, with Nvidia's GPUs widely used to accelerate AI workloads, thereby expediting robotaxi development.
- Technological Ecosystem: Nvidia not only provides industry-standard GPUs but also a rich software ecosystem, including the Omniverse simulation platform and Cosmos foundational models, which will assist developers in building and training autonomous driving systems, thus facilitating the commercialization of robotaxis.
- Zoox's Market Prospects: Amazon's Zoox is the only company operating purpose-built robotaxis on U.S. streets, expected to account for 12% of autonomous rides by 2032, providing significant revenue support for Amazon's future growth while reflecting its strategic positioning in the autonomous driving sector.
See More
Chewy Stock Poised for Rebound Amid Growth Prospects
- Profitability Improvement: Chewy achieved profitability in 2022, and despite a 78% drop in stock price, its autoship program accounts for 83% of net sales, demonstrating strong customer retention in a competitive market.
- New Business Expansion: Chewy has introduced a pet pharmacy, telehealth services, and the Chewy+ subscription service; although currently operating only 18 clinics in five states, these new ventures present significant growth potential for future sales.
- Valuation Changes: With a P/E ratio of 50, Chewy's valuation appears high, yet it compares favorably to Amazon during its e-commerce growth phase, and its P/S ratio has dropped to 0.9, indicating a reassessment of its value proposition by the market.
- Future Growth Expectations: Analysts forecast a 26% profit growth for Chewy this year and 24% by 2027, and as investors recognize its low valuation and ongoing growth, more capital is likely to flow into the stock, supporting its rebound.
See More
Investment Opportunity Analysis for Nasdaq-100 Index
- Historical Return Potential: The Nasdaq-100 has achieved an average five-year return of 103% over the past two decades, with historical data suggesting that it could nearly double investors' money in the next five years, making it an attractive option for investors.
- AI-Driven Growth: The Invesco QQQ Trust is heavily invested in AI-related stocks, with top holdings including tech giants like Nvidia and Apple, which are expected to benefit from the rapid development of AI technologies, further enhancing market performance.
- Market Correction Timing: The Nasdaq Composite is currently in a market correction, down over 10% from its all-time high, and historical data indicates that such corrections have led to an average five-year return of 146%, presenting a favorable investment opportunity.
- Concentration Risk Warning: While the Invesco QQQ Trust has a reasonable expense ratio of 0.18%, its top ten holdings account for nearly 50% of its performance, prompting investors to carefully consider the concentration risk and potential price volatility.
See More
Investment Value Analysis of Costco vs Amazon
- Costco's Market Performance: Costco offers essential goods at extremely low prices through bulk purchasing, and despite a gross margin of only 12.93%, it generates profits primarily from membership fees, demonstrating stability and appeal in any market environment.
- Amazon's Profit Drivers: Amazon's primary profit source is its cloud services unit, AWS, which has seen significant revenue growth amid rising demand for AI products, while its retail business is also improving its cost structure to favor earnings growth.
- Valuation Changes: Costco's forward P/E ratio has decreased from 55 to 48, while Amazon's has dropped from 35 to 25, indicating that both companies are experiencing valuation corrections, providing investors with more attractive buying opportunities.
- Investment Strategy Choices: For conservative investors, Costco may be more appealing due to its strong retail profile and dividend payments, while growth-seeking investors might prefer Amazon for its dominance in the high-potential AI sector.
See More
Chewy's Stock Shows Signs of Potential Rebound
- Sustained Sales Growth: Despite Chewy's stock price dropping approximately 78% since its peak in 2021, the company continues to see net sales growth, demonstrating its strong sales capabilities in a competitive market, particularly as consumers return to offline shopping post-pandemic.
- Improved Profitability: Chewy achieved profitability in 2022, and although its price-to-earnings (P/E) ratio stands at 50, it remains comparable to Amazon's performance during its e-commerce growth phase, indicating significant improvements in the company's profitability and market competitiveness.
- Expansion of New Services: Chewy has introduced new lines of business, including a pet pharmacy, telehealth services, and the Chewy+ subscription service, which enhances customer loyalty; currently, the autoship service accounts for 83% of its net sales, laying a solid foundation for future growth.
- Positive Future Projections: Analysts forecast a 26% profit growth for Chewy this year and 24% by 2027, and as investors become more aware of its low valuation and ongoing growth, Chewy's stock is likely to attract more buying interest, potentially driving a rebound in its stock price.
See More
Amazon's AWS Sees Significant Revenue Growth
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% year-over-year revenue increase in its latest quarter, marking the fastest growth in 13 quarters, demonstrating its robust position with a 28% market share in the global cloud market despite competition from Microsoft and Google.
- Advertising Business Surge: Amazon's advertising revenue grew by 23% year-over-year to over $21.3 billion in the most recent quarter, leveraging its vast user data and traffic, making advertising a new profit growth driver and enhancing its competitive edge in the market.
- Automation Enhances Efficiency: With over 1 million robots deployed across more than 300 global facilities, Amazon has significantly improved its e-commerce profitability by speeding up order processing and reducing handling costs, although this has led to some layoffs, the long-term investment is strategically sound.
- Future Investment Plans: Amazon's $200 billion spending plan for data centers and AI hardware by 2026 has raised some investor concerns, but this strategy is expected to lay a solid foundation for long-term growth for AWS and the overall business.
See More
Massive Potential in Autonomous Driving Market
- Market Size Analysis: According to the Bureau of Transportation Statistics, light-duty vehicles in the U.S. travel over 3 trillion miles annually, with ride-sharing services charging $1 to $2 per mile, indicating that even with autonomous driving technology halving costs, robotaxis represent a trillion-dollar market, showcasing immense commercial potential.
- Investment Dynamics: Hedge fund billionaire Ken Griffin increased his holdings in Nvidia and Amazon in Q4, both of which are central to the development of autonomous driving technology, with Nvidia's GPUs widely used to accelerate AI workloads, thereby expediting robotaxi development.
- Technological Ecosystem: Nvidia not only provides industry-standard GPUs but also a rich software ecosystem, including the Omniverse simulation platform and Cosmos foundational models, which will assist developers in building and training autonomous driving systems, thus facilitating the commercialization of robotaxis.
- Zoox's Market Prospects: Amazon's Zoox is the only company operating purpose-built robotaxis on U.S. streets, expected to account for 12% of autonomous rides by 2032, providing significant revenue support for Amazon's future growth while reflecting its strategic positioning in the autonomous driving sector.
See More
Chewy Stock Poised for Rebound Amid Growth Prospects
- Profitability Improvement: Chewy achieved profitability in 2022, and despite a 78% drop in stock price, its autoship program accounts for 83% of net sales, demonstrating strong customer retention in a competitive market.
- New Business Expansion: Chewy has introduced a pet pharmacy, telehealth services, and the Chewy+ subscription service; although currently operating only 18 clinics in five states, these new ventures present significant growth potential for future sales.
- Valuation Changes: With a P/E ratio of 50, Chewy's valuation appears high, yet it compares favorably to Amazon during its e-commerce growth phase, and its P/S ratio has dropped to 0.9, indicating a reassessment of its value proposition by the market.
- Future Growth Expectations: Analysts forecast a 26% profit growth for Chewy this year and 24% by 2027, and as investors recognize its low valuation and ongoing growth, more capital is likely to flow into the stock, supporting its rebound.
See More
Investment Opportunity Analysis for Nasdaq-100 Index
- Historical Return Potential: The Nasdaq-100 has achieved an average five-year return of 103% over the past two decades, with historical data suggesting that it could nearly double investors' money in the next five years, making it an attractive option for investors.
- AI-Driven Growth: The Invesco QQQ Trust is heavily invested in AI-related stocks, with top holdings including tech giants like Nvidia and Apple, which are expected to benefit from the rapid development of AI technologies, further enhancing market performance.
- Market Correction Timing: The Nasdaq Composite is currently in a market correction, down over 10% from its all-time high, and historical data indicates that such corrections have led to an average five-year return of 146%, presenting a favorable investment opportunity.
- Concentration Risk Warning: While the Invesco QQQ Trust has a reasonable expense ratio of 0.18%, its top ten holdings account for nearly 50% of its performance, prompting investors to carefully consider the concentration risk and potential price volatility.
See More
Investment Value Analysis of Costco vs Amazon
- Costco's Market Performance: Costco offers essential goods at extremely low prices through bulk purchasing, and despite a gross margin of only 12.93%, it generates profits primarily from membership fees, demonstrating stability and appeal in any market environment.
- Amazon's Profit Drivers: Amazon's primary profit source is its cloud services unit, AWS, which has seen significant revenue growth amid rising demand for AI products, while its retail business is also improving its cost structure to favor earnings growth.
- Valuation Changes: Costco's forward P/E ratio has decreased from 55 to 48, while Amazon's has dropped from 35 to 25, indicating that both companies are experiencing valuation corrections, providing investors with more attractive buying opportunities.
- Investment Strategy Choices: For conservative investors, Costco may be more appealing due to its strong retail profile and dividend payments, while growth-seeking investors might prefer Amazon for its dominance in the high-potential AI sector.
See More
Chewy's Stock Shows Signs of Potential Rebound
- Sustained Sales Growth: Despite Chewy's stock price dropping approximately 78% since its peak in 2021, the company continues to see net sales growth, demonstrating its strong sales capabilities in a competitive market, particularly as consumers return to offline shopping post-pandemic.
- Improved Profitability: Chewy achieved profitability in 2022, and although its price-to-earnings (P/E) ratio stands at 50, it remains comparable to Amazon's performance during its e-commerce growth phase, indicating significant improvements in the company's profitability and market competitiveness.
- Expansion of New Services: Chewy has introduced new lines of business, including a pet pharmacy, telehealth services, and the Chewy+ subscription service, which enhances customer loyalty; currently, the autoship service accounts for 83% of its net sales, laying a solid foundation for future growth.
- Positive Future Projections: Analysts forecast a 26% profit growth for Chewy this year and 24% by 2027, and as investors become more aware of its low valuation and ongoing growth, Chewy's stock is likely to attract more buying interest, potentially driving a rebound in its stock price.
See More
