Should I buy Amazon shares today?
Amazon (NASDAQ: AMZN) shares have underperformed this year. While major stock market indexes such as the S&P 500 and the FTSE 100 have climbed higher, Amazons share price has actually fallen. Heres my take. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential...  Why Amazons share price has stalled  Amazons share price weakness this year is not so surprising. For starters, the stock delivered huge gains last year, rising from $1,848 to $3,257. After that kind of performance, a pullback, or period of consolidation, was always a possibility. Secondly, with Covid-19 vaccines being rolled out, all the attention is on reopening stocks such as airlines right now. Big Tech stocks that did well during the pandemic generally arent so popular. Buying opportunity  Im looking at the current share price weakness as a buying opportunity. Amazons recent first-quarter 2021 results were very strong and smashed Wall Streets expectations. For the quarter, e-commerce growth was 44%. Meanwhile, growth in the cloud computing division was 32%. Earnings per share came in at $15.79, versus $5.01 in Q1 2020. Looking ahead, I expect Amazon to deliver powerful growth in the long run. Its two key markets, e-commerce and cloud computing, are projected to grow substantially over the next decade. This growth should provide tailwinds. In five years time, I think Amazon is likely to be much bigger than it is today. Amazon stock forecast  Its worth noting that after the companys Q1 results, over 20 analysts increased their share price targets for the stock. Pretty much every one of them lifted their target to $4,000, or higher. One analyst even went to $5,500. Currently, the average stock price forecast for Amazon is $4,245. Thats about 33% above the current share price. This reinforces my view that nows a good time to buy the stock. Valuation  Turning to the valuation, Amazon stock isnt cheap by traditional valuation measures. Currently, it sports a forward-looking price-to-earnings (P/E) ratio of about 58. Thats almost three times the median S&P 500 forward-looking P/E ratio. However, history shows that not buying Amazon stock because of its high valuation has been a mistake. Over the last 10 years, Amazon has always traded on a high P/E ratio. At times, its P/E has been above 200. Over 1,600%. Risks  There are risks to be aware of, of course. One is that Amazons a volatile stock. On a regular basis, its share price pulls back 20%, or more. So, this isnt a stock for those who need capital preservation. Amazon also faces intense competition. In e-commerce, it faces competition from the likes of eBay, Shopify, and ASOS. In cloud computing, it faces rivals Microsoft, and Alphabet. Amazon shares: Id buy today  Overall however, I believe Amazon stock offers an attractive risk/reward proposition right now. With the stock consolidating its gains from early 2020, I think its a great time to be buying. I hope to see $4,000 in the not-too-distant future.