Amazon Stock Trades at Rare Discount as Jassy Bets Big on AWS Growth

Amazon's stock has been trading at an unusually low valuation in recent times, despite its impressive growth trajectory under CEO Andy Jassy. The company's founder Jeff Bezos had a vision for Amazon to become one of the most valuable companies in the world, and he led it from being a startup bookseller to a $1.8 trillion technology giant by the time he stepped down as chief executive on July 5, 2021.

Jassy has overseen a roughly 50% increase in Amazon's market value since taking over, pushing its worth to about $2.7 trillion. He has been instrumental in building and running Amazon Web Services (AWS), the cloud-computing division that has become the company's largest source of profit.

AWS remains the leading cloud infrastructure provider globally, holding a 28% market share as of the second quarter of 2026. Its growth has accelerated sharply over the past year, driven by demand for generative artificial intelligence services. In its second-quarter results reported July 30, Amazon said AWS revenue rose 37% year-over-year to $42.2 billion.

Jassy is betting big on AWS's growth potential, with a sharply higher spending plan tied to artificial intelligence and cloud computing. The company has raised its full-year 2026 capital expenditure guidance to approximately $220 billion, up from a prior estimate of about $200 billion. This increase in spending is primarily due to higher memory costs tied to building out AI and data center infrastructure.

Despite the scale Amazon has already achieved, its stock currently trades at what analysts describe as an unusually attractive valuation relative to its own history. The company's growth trajectory and dominant position in cloud infrastructure suggest that Jassy's strategy of funneling record sums into data centers and custom silicon is a calculated bet on sustained demand.