Story perspectives

Amazon's Valuation Plummets Amid Growth Concerns and Costs

10/15/2025

Summary

Story summary

Amazon.com, Inc. trades at its lowest valuation in over a decade, signaling concerns about growth potential.
Amazon's EV/EBIT ratio has fallen 63% from its peak, reflecting margin pressures in retail and rising costs.
Amazon Web Services remains the cloud leader but faces faster growth from Microsoft Azure and Google Cloud.
In Q2, AWS grew 17.5% but margins declined, with analysts saying supply constraints may delay recovery until bottlenecks are resolved.

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Story summary

Amazon.com, Inc. trades at its lowest valuation in over a decade, signaling concerns about growth potential.
Amazon's EV/EBIT ratio has fallen 63% from its peak, reflecting margin pressures in retail and rising costs.
Amazon Web Services remains the cloud leader but faces faster growth from Microsoft Azure and Google Cloud.
In Q2, AWS grew 17.5% but margins declined, with analysts saying supply constraints may delay recovery until bottlenecks are resolved.