Amazon Stock Now Looks Undervalued

TECH
Amazon Stock Now Looks Undervalued

Amazon stock is starting to look like a bargain after a recent slide, with its valuation now near historic lows not seen since its 1997 IPO. The stock trades at about 28 times estimated future earnings—roughly half its 10-year average—and below rivals like Walmart, Costco, and even Apple. This drop is partly due to the broader market selloff and Amazon’s focus on cost-cutting, which has boosted profitability.

Despite seven straight weekly declines and a 6.3% year-to-date drop, analysts remain bullish. Over 95% of those tracked by Bloomberg rate it a buy, and the stock trades more than 30% below the average price target. Revenue is expected to grow nearly 10% annually through 2026, driven by e-commerce, AWS, and AI. However, uncertainty around tariffs, consumer demand, and heavy AI investment has tempered investor enthusiasm. While fundamentals look solid, many believe clearer economic signals are needed for a strong rebound.

TECH
Alibaba Unveils Powerful Multimodal AI

Alibaba Cloud has launched its latest large language model, Qwen2.5-Omni-7B, a powerful multimodal AI that processes text, images, audio, and video, delivering real-time text and speech responses. Designed for edge devices like smartphones, it balances high efficiency with strong performance, making it ideal for intelligent voice applications, such as assisting visually impaired users. The model is open-sourced on Hugging Face and GitHub, aligning with a growing trend in China following DeepSeek’s breakthrough R1 model.

This launch is part of a broader surge in AI development among Chinese tech giants. In recent weeks, Baidu released new foundational and reasoning-focused models, while Alibaba updated its Qwen model and launched a new AI assistant. Committed to AI leadership, Alibaba plans to invest $53 billion in cloud and AI infrastructure over three years. The company also announced major partnerships with Apple and BMW, cementing its role at the forefront of China’s rapidly evolving AI landscape.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.