Amazon's New Business Reality Bodes Well for Investors

Amazon's stock price has fallen below its all-time high of $287.2, causing some investors to worry that the company is overvalued.

However, a closer look at Amazon's business reveals that it has transformed significantly since reaching those highs.

Today, Amazon is not just an e-commerce giant but also a major player in cloud computing through its Amazon Web Services (AWS) division.

AWS revenue rose 37% to $42.23 billion in the second quarter, with growth over the last four quarters averaging 20%, 24%, 28%, and 37%.