Amazon is that resilient friend who stumbles here and there but always comes out stronger, smarter, and somehow richer. Though Amazon has been trading, as if undergoing a midlife crisis, going down by over 20% from its recent highs. Some investors seem to be headed for the exit, but may instead want to reach for their wallets. If there’s anything history has taught us, it’s that betting against Amazon hasn’t been that bad.

In contrast to the trend that appears to push all the other stocks higher, Amazon’s stock is heading on a different path. The stock remains down over 20% below its February highs despite the meek rebound, a performance that technically keeps it in bear market territory. But the history may rather be favorable for any long-term investors who dare to consider this stock.

Pattern for Grabbing Opportunities

Amazon has been through its share of rough waters. The company’s stock has slumped by more than 20% from previous highs on 21 occasions since the company went public in 1997, that is almost once every 16 months on average. While a few stock dives were quite brief, like that of the COVID-19 market crash in 2020, other times, like the long-term crash that followed after the dot-com bubble burst, took 9 years before recovery.

In fact, those who remained steadfast have made huge profits. A $10,000 investment made during the December 1999 crash would be worth almost $340,000 in today’s terms. Such a record has convinced long-term investors that a pullback in Amazon leads to a strong rebound.

Valuation levels Since the Great Recession

The current valuation of Amazon only adds to the mystery. Trading at less than 33 times trailing 12-month earnings, which has not been since the depths of the 2008 financial crisis and what would later be called the Great Recession. A $10,000 investment in Amazon would have grown to over $760,000 today, as what past seemed to indicate that it was a good time to invest in the company.

The forward price-to-earnings ratio of Amazon is lower and attractive, at under 28, which indicates that Wall Street is expecting strong earnings growth in the future. After years of investing, Amazon is returning its focus on profitability, and this is beginning to show. For investors looking for an entry point, it may be one of the most attractive ones for some time.

Amazon Strives For Growth

Amazon in 2025 is a radically different company compared to what it was in 2000 or even in 2010. AWS has ceased to be the new kid on the block, and growth in cloud computing has matured, but it is far from over. Analysts are predicting that the next wave of demand for cloud services will come from artificial intelligence, and Amazon is well entrenched in that ecosystem.

Amazon’s relentless rampage into new industries has met by the new expansion of AWS. The gamble it takes on healthcare, satellite broadband through Project Kuiper, and driverless cars are being regarded as future revenue drivers for the next ten years, if not more. Although e-commerce growth has lessened compared to its high point during the pandemic, it still forms a vital boost to the company’s growth of businesses.

An Ambiguous Bet

Amazon, in case you haven’t realized, isn’t exactly on its ideal growth journey today, nor does it mean that its brightest day lies in the past. History shows that the stock has kept rewarding its investors for buying it during downturns, and it seems that the current valuation might just be offering the same.

With fundamentals improving, a vast innovation pipeline, and an ever-more profitable business model, Amazon would appear better positioned than its recent stock performance would suggest. Many would flinch at the Amazon dip, but for those who look beyond headlines, it is a perfect opportunity for investors. Amazon deserves not only a placement on your watch list but rather a spot on your buy list.