Amazon Could Still Be The Most Undervalued Magnificent Seven Company

By Brian Rezny, President of Rezny Wealth Management – A Fee-Only Fiduciary Money Manager

In the world of big tech, Amazon (AMZN) stands out as a powerhouse that's often overlooked amid the hype around AI giants. But with stellar Q3 2025 results, Amazon is proving it's primed for massive growth. This short overview explores why AMZN might be the most undervalued stock in the Magnificent Seven (AAPL, AMZN, GOOG, META, MSFT, NVDA, TSLA), trading at attractive multiples while leading in cloud, AI, and e-commerce. As a script for an AI video, imagine dynamic visuals of Amazon's warehouses, AWS data centers, and stock charts to bring these points to life. Amazon's Q3 2025 Highlights: Growth Reaccelerating

• AWS Powers Ahead: Amazon Web Services (AWS) saw revenue growth reaccelerate to 20% year-over-year in Q3 2025, hitting $33 billion—its fastest pace since 2022, driven by AI demand and cloud expansions. 

• Operational Wins: Cash from operations surged 78% YoY, reflecting improved efficiency, while investments in AI, robotics, and fulfillment networks set the stage for higher margins. 

• Overall Performance: Net sales climbed 13% to $180.2 billion, with operating income at $17.4 billion (after special charges), underscoring Amazon's ability to balance growth and profitability. 

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Long-Term Upside: Path to Trillion-Dollar Valuation

• Margin Expansion Potential: If Amazon hits 20% operating margins by 2029—feasible with AWS scaling and cost efficiencies—it could generate $200 billion in operating income, potentially boosting market cap to $5–$7.5 trillion. 

• Undervalued Metrics: Trading at just 25x forward earnings—one of its lowest valuations—AMZN offers outsized upside compared to peers, positioned to lead in AI and the next tech wave. 

• Market Position: As the Magnificent Seven's "cheapest" play with strong fundamentals, Amazon's stock could soar, especially with Q4 guidance for 10-13% revenue growth. 

Amazon's blend of innovation and value makes it a compelling pick for long-term investors. But remember, stock picks should fit your overall strategy. Always ensure your money is managed properly, effectively, and actively. Trust only a fee-only fiduciary money manager like Rezny Wealth Management—anything else introduces 

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.