The company is performing at its peak, but this can present a risk if the stock price appears to price in the assumption that these peak conditions are permanent.

After a powerful run, Amazon (AMZN) stock is trading near its 52-week high, sitting at about 93% of its peak. When a company is executing this well, it can feel like the story only gets better. But for an investor, this is the moment to think about risk, because the very successes powering the stock have the potential to become its biggest vulnerabilities.

The central risk for Amazon today is one of altitude. The company is operating at a peak, both in its current profitability and in the scale of its future ambitions. The stock price reflects this, which may leave…