Amazon stock down 20%, presents buying opportunity

The stock market has recently seen a sell-off, which has created opportunities for investors. One notable growth stock that stands out is Amazon, whose shares are down about 20% from their recent highs. Amazon has a history of heavy investments. The company built a vast warehouse and logistics network, evolving from an online bookseller to the largest e-commerce marketplace globally. Interestingly, its most profitable segment is not e-commerce but Amazon Web Services (AWS), the cloud computing division that started in 2006. Amazon has always focused on long-term growth, even at the cost of short-term profits. Now, the company is investing heavily in artificial intelligence (AI). AWS is benefiting from this trend, helping customers with AI models and applications. Amazon offers various popular AI models and its own custom AI chips to optimize performance and reduce costs. Despite the focus on AWS, Amazon's e-commerce business remains strong. In the last quarter, North American revenue increased by 10%, while international revenue rose by 8%. Operating income also grew significantly, with North America seeing a 43% increase. Currently, Amazon's stock is trading at relatively low price-to-earnings ratios compared to its history. With exciting AI opportunities and a favorable valuation, many see this as a great time to buy Amazon stock.