Amazon Stock Plunges to Attractive Buy Levels Amid Cloud Growth

Amazon's shares have dropped to a price-to-earnings ratio of 20.1, making them an attractive buy for investors. This is particularly true given that the lowest multiple the shares hit was 18.2 in late July.

The company's growth is being driven by accelerating revenue trends in its cloud segment, Amazon Web Services (AWS). AWS is registering impressive profitability as it captures robust demand for artificial intelligence.

Amazon's online marketplace benefits from the ongoing e-commerce secular trend, and digital advertising revenue surged 26% year over year in the second quarter. Despite consensus analyst estimates of $828 billion in net sales this year, the company still has many growth levers to draw on.