What Makes Amazon (AMZN) an Attractive Long-Term Investment Opportunity?

1 month ago 13

Soumya Eswaran

Mon, January 19, 2026 astatine 8:44 AM CST 4 min read

Wedgewood Partners, an concern absorption company, released its fourth-quarter 2025 capitalist letter. The steadfast anticipates stronger marketplace volatility successful the coming years and has moderated its enthusiasm. A transcript of the missive tin beryllium downloaded here. The Wedgewood Composite returned -1.8% (net) successful the 4th fourth compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ absorption connected high-quality stocks has historically worked since 1992, but not successful 2025. The missive highlighted mediocre banal selection, the portfolio’s beardown past performers owed for valuation correction, and being structurally underweight successful AI stocks drove the underperformance. The missive noted that successful 2026, crowded AI investments and stretched valuations make unit connected prudent concern decisions. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Wedgewood Partners highlighted stocks specified arsenic Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides user products, advertising, and subscription services done online and carnal stores. On January 16, 2026, Amazon.com, Inc. (NASDAQ:AMZN) banal closed astatine $239.12 per share. One-month instrumentality of Amazon.com, Inc. (NASDAQ:AMZN) was 4.68%, and its shares gained 5.83% of their worth implicit the past 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a marketplace capitalization of $2.556 trillion.

Wedgewood Partners stated the pursuing regarding Amazon.com, Inc. (NASDAQ:AMZN) successful its 4th fourth 2025 capitalist letter:

"We person followed Amazon.com, Inc. (NASDAQ:AMZN) for galore years – and owned its banal successful the past. The banal has lagged the broader indices for the past ive years, and valuation multiples person reverted little contempt currency debased returns connected concern rebounding to near-record levels. Current absorption is much focused connected managing capableness and costs aft anterior absorption spent respective years aggressively gathering retired some the e-commerce and AWS footprints. For example, the Company's EV/EBITDA aggregate is trading astir 13X for 2026, good beneath its pre-COVID-19 levels of 25X and the 10-year mean of 17X. Meanwhile, currency debased returns person rebounded to much than 20%, driven by grounds margins. The existent absorption squad has done good to turn the businesses into their existent overcapacity and amended lucifer that capableness to demand. We expect Amazon should beryllium capable to turn astatine double-digit rates, driven by expanding penetration of e-commerce and infrastructure arsenic a work (IaaS), portion expanding margins arsenic they amended negociate capableness to demand.