Should You Buy Amazon Before 2026?
Key Points
Amazon’s wide economic moat makes it a business that’s extremely difficult to disrupt.
The stock’s current valuation is very compelling for long-term investors.
- 10 stocks we like better than Amazon ›
Without question, Amazon (NASDAQ: AMZN) is one of the world's most dominant companies. A culture that obsesses over the customer has resulted in a tech titan that has a strong position in multiple industries. And the shares have done remarkably well, rising 579% in the past decade, as of Nov. 26.
This tech stock trades 10% below its peak as I write this. Should you buy Amazon before 2026?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Amazon.
Amazon is almost impossible to disrupt
Amazon has multiple durable competitive strengths that make up its economic moat. Its online marketplace, for instance, benefits from a network effect. Also, merchants, as well as Amazon Web Services customers, must deal with switching costs, discouraging them from using rivals' offerings. And Amazon's massive scale gives it a tremendous cost advantage, like with its logistics footprint allowing for fast and sometimes free delivery. And the company's brand name is highly regarded.
All of these factors make Amazon a business that's almost impossible to disrupt.
The stock's valuation looks reasonable
Historically, Amazon has been a wonderful stock to own. But even after such a monumental gain, the current valuation is enticing. Shares trade at a forward price-to-earnings ratio of 29.
Investors looking to add a dominant business to their portfolios would be wise to take a closer look at Amazon before the calendar turns to 2026.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
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