Amazon Stock Is Down 12% From Its Record High — Here's Why It Might Be an Opportunity
Shares of Amazon have retreated from their record high set on August 3, with the stock currently trading about $249.67 as of now—roughly 12% below its peak. Despite this pullback and underperforming compared to the S&P 500 in 2026 so far, Amazon's strong fundamentals remain intact. The recent drop has been influenced by a lawsuit filed on August 31 by the Federal Trade Commission (FTC) alongside 22 state attorneys general. The suit alleges that Amazon misrepresented its ad auction practices to advertisers. However, this legal challenge does not affect the company’s most recent financial results and is unlikely to impact near-term performance. The strongest driver of investor interest remains Amazon Web Services (AWS), which saw a year-over-year revenue increase of 37% in Q2 to $42.2 billion. AWS operating income also surged by around 64%, indicating strong profitability growth. Additionally, the company’s backlog has grown significantly due to long-term contracts like its recent $100 billion agreement with Anthropic for AI infrastructure.
Tickers: $AMZN
Topics: advertising revenue Amazon stock AWS growth FTC lawsuit