There's no denying the fact that Amazon (AMZN 1.47%) is one of the most disruptive businesses out there. The company upended the retail sector. It introduced cloud computing to the world. And it's making inroads in healthcare and autonomous driving.
Management's forward-thinking mentality has made this "Magnificent Seven" stock a huge winner. Its shares have rocketed 647% and 11,500% higher in the past 10- and 20-year periods (as of March 3).
But as we stand in 2026, is Amazon stock a long-term buy?
Image source: The Motley Fool.
The foundation is secure
Investors would do better in the stock market if they focused on the highest-quality companies. Over long periods of time, these businesses can boost your portfolio's results. Amazon falls squarely into this category. This is an elite company.
Amazon's positioning at the center of multiple secular trends is a situation most businesses dream of. The growth of online shopping, cloud computing, digital advertising, and streaming entertainment, for example, has and will continue to propel Amazon forward. The company is also a power player in the artificial intelligence race, with plans to spend $200 billion in total capital expenditures in 2026.
Despite its gargantuan revenue of $717 billion in 2025, analysts estimate the top line to increase 41% to surpass $1 trillion in 2028. That growth helps to lift net income, which was up 31% last year compared to 2024. From a financial perspective, the company is in great shape.
As mentioned, Amazon is a disruptive force. Its strong position in numerous markets supports its staying power. Said differently, investors can sleep well at night knowing that the business they own has almost no threat of being disrupted itself.
Amazon's tremendous scale provides an unmatched cost advantage. Its online marketplace possesses a powerful network effect. Customers of Amazon Web Services deal with high switching costs. And the ability to collect and leverage mountains of data allows the enterprise to constantly improve and find new monetization avenues.
This company is undoubtedly worthy of being a long-term investment.
NASDAQ: AMZN
Key Data Points
Don't ignore the valuation
Once an investor decides that Amazon is a wonderful business, the next hurdle to clear centers on the valuation. If investors pay too high a price, it can be an obstacle to producing outsize investment gains. Valuation should never be overlooked.
Amazon shares have faced some selling pressure, as they're off 18% from the peak. This provides investors with a great opportunity to buy. The stock trades at a price-to-earnings ratio of 29.1. This is basically a 10-year bargain valuation, as the multiple has rarely been cheaper over the past decade.
Don't make the decision complicated. Amazon makes sense as a long-term buy.
