Is it a good time to buy Amazon stock at a discount?

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Ddespite Amazonit is (NASDAQ: AMZN) with the stock down more than 40% from its all-time high, this may be a good opportunity to buy. Fool.com contributors Matt Frankel and John Bromels discuss the e-commerce giant’s performance in this clip from “The Rank” on Motley Fool Live, recorded on July 13.

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Matt Frankel: We both had #1 consensus. It was pretty clear that we both agreed that Amazon is the best value right now, I guess, to invest money in. fresh money. I am shocked that Amazon is currently the fourth largest company by market capitalization on the S&P. There’s a solid argument to be made it should be No. 1. It’s down 42% from the highs. This is the second largest drop on this list, next to You’re here (NASDAQ: TSLA), which was 43%. They have their dominant e-commerce business, but e-commerce itself continues to grow rapidly. E-commerce accounts for less than 15% of total retail trade. Not a day goes by without at least two Amazon packages showing up on my porch.

John Bromel: Oh my God, Prime Day. I don’t know if I just found a bunch of stuff I needed on Prime Day or saw it on Prime Day and it made me think I needed it. But like this week, I may not be able to leave my house because of all the Amazon packages that are about to be dropped off at my doorstep.

Frankel: Not to mention Amazon Web Services, which is the main player in the cloud. They even have an advance Microsoftit is (NASDAQ: MSFT) cloud platform.

Bromines: Yes.

Frankel: It is a growing market. I mentioned a $1.3 trillion market by 2030 if they could just maintain their market share.

Bromines: AWS is huge.

Frankel: More profitable than the e-commerce side.

Bromines: Yeah, that’s the benchmark and I’ve dug a lot into cloud services. I was talking about Microsoft Office being second best. I mean, everyone agrees that AWS is undisputed, best in the business, best in class for cloud services, and it’s a good place to be.

Frankel: It’s amazing how quietly they’ve built this side of the business. [laughs] That’s what always shocks me. If you follow the tech industry, you’ve known AWS forever. If you’re just a casual investor, you know Amazon for e-commerce. But this is no longer the dominant part of its activity. I wouldn’t even go that far.

Bromines: Absolutely. With the company, more than 40% at the moment of its peak level, and its turnover is the highest of this group. I mean four hundred and seventy billion dollars in revenue over 12 months. It absolutely destroys others. Those are the big factors for me. Also, Amazon again, using all that money to make other bets. I mean, really investing…

Frankel: Health care

Bromines: …in the smart home ecosystem, by actually investing in health. Yes, all of those things.

Frankel: I saw that Amazon is testing cancer vaccines, I read in the news the other day.

Bromines: I haven’t heard of it.

Frankel: In partnership.

Bromines: Now I will look for it.

Frankel: I have to make sure I didn’t misquote this, but I’m 99% sure I read this. It’s just a really impressive company. If I had to name one stock on this list that has the ability to be a multibagger over the next decade, it would probably be Amazon and that’s why it got my #1 ranking.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. John Bromels holds positions at Amazon, Microsoft and Tesla. Matthew Frankel, CFP® holds positions at Amazon. The Motley Fool holds positions and recommends Amazon, Microsoft and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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