AMZN Analysis: AWS Acceleration and Ad Revenue Surge Make the 19% Pullback Worth a Closer Look
Amazon.com, Inc. (NASDAQ: AMZN) trades at $210.00 as of February 28, 2026, roughly 19% below its 52-week high of $258.60 and well above its 52-week low of $161.38. For a company that just delivered $716.9 billion in full-year revenue and $77.7 billion in net income, the pullback raises a straightforward question: has the market handed long-term investors a more reasonable entry point, or are the headwinds that drove the decline still strengthening? The answer lies in two accelerating profit engines that many investors underappreciate. AWS cloud revenue growth re-accelerated to 24% year-over-year in Q4 2025, reversing the deceleration narrative that weighed on the stock through much of 2024. Meanwhile, Amazon's advertising services business quietly reached $21.3 billion in quarterly revenue, establishing itself as the third-largest digital ad platform globally. Both segments carry margins well above the consolidated average, meaning their growth disproportionately lifts the bottom line. With a forward PE of roughly 29x trailing earnings, a market capitalisation of $2.25 trillion, and next earnings due April 30, 2026, Amazon sits at an inflection point where its highest-margin businesses are gaining share while the stock price reflects meaningful scepticism. This analysis examines whether that scepticism is warranted.