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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.
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 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.
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.
Before you buy stock in Amazon, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $580,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,084,986!*
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*Stock Advisor returns as of November 24, 2025
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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