USA: The price of Amazon (NASDAQ: AMZN) stock has declined significantly over the past nine months. As a result it has returned to pre-pandemic levels.

I already have some shares of Amazon in my stock portfolio. Is it time for me to buy more? Let's talk now.

I don't expect Amazon's share price to increase significantly in the near future. The stock remains expensive even after a steep drop in share price (P/E ratio is over 50 using projected earnings for 2023).

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Additionally, the current environment is not conducive for expensive growth stocks as central banks are raising interest rates and investors are focusing heavily on valuations.

Amazon currently faces a number of difficulties including slow growth, weak consumer spending, high costs and overcrowded warehouses. All of these have an effect on how people feel about the stock.

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Having said that, I am worried about the stock returning to pre-pandemic levels. Because in my opinion, this company has immense long-term potential.

In my opinion, the online shopping division of the business has a lot of room to grow. Predence Research estimates that between now and 2030, the global business-to-consumer e-commerce market will expand by approximately 8%. This market expansion should generate strong profits for Amazon.

And it has many advantages over its competitors in this market. Not only does it have a strong brand (according to Cantor BrandZ, it's the third largest in the world), but it also has over 200 million Prime members (much more than before the pandemic). To offset the annual fee, these members often make large purchases on the website.

In my opinion, there is also a lot of room for expansion in the division of the business for cloud computing. Grand View Research predicts that between now and 2030, this market will expand by about 16% annually.

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With a market share of over 30% in this sector, Amazon dominates the competition. This dominance of the market is also a competitive advantage. Cloud revenue growth was 27.5% last quarter.

Another area that is driving Amazon's revenue is digital advertising. It is the third largest player in this market after Google and Facebook.

And what's particularly noteworthy to me is that, unlike its competitors, it has growing digital ad sales in 2022. Amazon's advertising revenue grew 25% from Q2 to Q3, to $9.6 billion.