Experienced Investors Are Doubling Down On This Giant Tech Stock – Money Digest
After reaching a closing high of $287.20 in August 2026, Amazon stock fell over 12% to $251.40 on October 5, 2026 (Nasdaq). The company was trading near its lowest-ever valuation in October 2026, at 20 times its earnings. Meanwhile, investors and investment publications alike have called out the company’s lackluster performance throughout 2025 and 2026. However, despite this some investors are doubling down — even if Amazon is nowhere near the best-performing S&P 500 stocks of 2026.
In August 2026, Everything Money described sticking with the company as smart, thanks to its 37% year-over-year growth and its generative AI ventures finally becoming real revenue. Meanwhile other investors are taking advantage of the company’s declining prices to invest, or double down on their current investments, in the company at a more attractive price. A primary reason investors are sticking with Amazon is that the company is a powerhouse that is likely to stay that way. Despite the shady things Amazon doesn’t want you to know, it’s still the world’s largest e-commerce retail company and boasts over 315 million active customers.
Morgan Stanley analyst, Brian Nowak, noted in August that the company’s share prices could double by the end of 2027, emphasizing the importance of a long-term outlook, via MarketWatch – so only time will tell if investors are rewarded for doubling down.
Investment in Amazon should still be treated with caution
Investing in tech is always a risky business. From the dotcom bubble burst of 2000 to pricey startup failures throughout the 2010s to concerns about artificial intelligence over-inflating financial projections in the 2020s, the tech corner of the stock market has long been a volatile one. So, it’s still wise to assume being an Amazon shareholder carries its own risks. Plus, lingering concerns over whether the AI bubble will eventually burst and cause a major stock crash has made some hesitant. It doesn’t help that Amazon founder Jeff Bezos has fluctuated between acknowledging this concern and brushing it off as a non-issue.
Amazon’s reputation has also not been the best in recent years. Between 2011 and 2025, Amazon spent around $276 billion on data centers in order to support Amazon Web Services, with the company reportedly sinking even more into these centers in 2026. However, AI data centers are facing widespread backlash from consumers due to issues with water usage and negative effects on local communities. There’s also Amazon’s profitable but morally questionable financial strategy, which has drawn legal scrutiny over alleged price fixing. The state of California even sued Amazon over this, with the case still ongoing as of October 2026. Although the state’s bid to block Amazon’s tactics is expected to be unsuccessful, the case is headed to trial in January 2027. Depending on the outcome, and how the company’s reputation fares when it comes to data centers, Amazon’s stock could fluctuate even further in the coming years.
