Amazon.com (AMZN) Weighs Decart Deal, Is The Stock Still Undervalued? Simply Wall St Tue, October 13, 2026 at 12:09 PM EDT 3 min read AMZN +0.30% Trade AMZN on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Amazon.com (AMZN) is back in focus after reports it is in advanced talks to buy AI startup Decart for about US$7b. The potential deal targets software that helps developers spread AI workloads across competing chips.
For context, Amazon.com's 7 day share price return of 3.23% and 90 day share price return of 4.86% sit alongside a 1 year total shareholder return of 17.93% and 3 year total shareholder return of 95.80%. This points to momentum that has been building rather than fading as AI related headlines, regulatory scrutiny and Alexa leadership changes all vie for investors' attention.
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After a near 18% total return over the past year and fresh AI headlines around Decart, the real test for Amazon.com now is simple. Is most of the upside already in the price, or not yet?
Against a last close of $259.53, the most followed narrative on Amazon.com sketches a fair value of $475.09, which frames the Decart headlines inside a much bigger AI and AWS story.
Amazon is a company of two sides: a high tech, high margin side, comprising its AWS, Advertising and subscription services segments; and its more traditionally known low margin, high volume stores and third-party seller segments. These two sides form a cohesive whole. The Amazon online store motivates customers to purchase subscriptions and hosts its advertising. AWS underpins the functioning of the online store, but is also easy to integrate with for Amazon's many third-party sellers, encouraging adoption.
See why 300 investors see Amazon.com as 45% undervalued.
According to KiwiInvest, that mix of high margin services and lower margin retail is central to the valuation gap, with the higher yielding side of Amazon.com expected to become a larger slice of the overall pie over time as AI workloads and cloud usage scale through AWS and advertising.
Result: Fair Value of $475.09 (UNDERVALUED)
Still, the bullish Amazon.com story can crack if AI infrastructure spending cools faster than expected, or if regulators clamp down on how AWS and advertising use data.
Find out about the key risks to this Amazon.com narrative.
Mixed feelings about Amazon.com after all this. If that sounds familiar, act promptly and evaluate your own thesis against the 4 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AMZN.
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