Amazon is one of the three Magnificent 7 stocks to underperform the S&P 500 over five years, creating a stark valuation disconnect between its stock price and underlying fundamentals. AWS revenue growth is sequentially accelerating, with AI and custom silicon businesses driving robust top-line and margin expansion through at least FY28. Anthropic's potential $2T IPO could unlock $400B in liquid assets for AMZN. Stripping away $400B, Amazon's market cap hasn't moved since late 2024, which further highlights the valuation disconnect.
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