Amazon.com (AMZN) Trades at Significant Discount to Intrinsic Value

Loomis Sayles, an investment management firm, disclosed in its Q2 2026 Global Growth Fund investor letter that Amazon.com, Inc. (NASDAQ:AMZN) is significantly undervalued compared to its intrinsic value. The fund returned 6.43% for the quarter, trailing the MSCI ACWI Index's 14.93% return. Amazon.com, Inc. is a technology and retail giant that operates an online marketplace and cloud platform, and contributed to the fund's positive performance.

Amazon's two main businesses, e-commerce and AWS, have strong and sustainable competitive advantages. The e-commerce side benefits from Amazon's brand, scale, technology platform, network advantage, and logistics and distribution systems. AWS enjoys its brand, technology platform, and massive scale, which allows it to pass on cost savings while continuing to innovate.

Both businesses are growing rapidly in excess of their underlying retail and IT markets. Despite this, the fund still considers certain AI stocks to have greater upside potential and lower risk.