Amazon hasn’t been this cheap since 2008. Here’s how the stock could rally 46% from here.

Amazon’s stock valuation has dropped to its lowest level since 2008, presenting a potential buying opportunity despite recent underperformance in the AI-driven market rally. Analyst Brent Thill of Jefferies argues the stock is "mispriced, not broken," citing excessive pessimism over Amazon’s $200 billion AI investments overshadowing strong fundamentals in cloud and retail sectors. Shares fell 11% in 2026 amid concerns over elevated AI spending and perceived weak cloud growth, though Thill notes leading indicators like data-center expansion suggest underlying strength. The retail business remains resilient, contrasting with market skepticism, while Amazon’s infrastructure investments position it for long-term gains despite short-term valuation pressures. Thill projects a 46% upside potential, asserting current negativity misaligns with operational momentum and strategic positioning in AI and cloud infrastructure.