Without question, Amazon (AMZN +1.77%) 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?
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.
NASDAQ: AMZN
Key Data Points
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.
