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Amazon has tumbled 8 percent from its highs. Should you buy?

One of the hottest stocks in the S&P 500 is in a rare and sudden slump.

Shares of Amazon have fallen more than 8 percent since its earnings miss in the last week of July, the very same week the now-$994 stock rose to an all-time high of $1083.31. That's the biggest pullback since last October, leaving investors with a simple yet somewhat complicated question: do you buy it?

"Right now, most consensus targets for Amazon are about 15 percent to 16 percent higher than what it is trading now, so there is definitely room for upside. And we can't argue with the kind of earnings growth that we are expecting this year and the year after," Erin Gibbs, portfolio manager at S&P Global, said Friday on CNBC's "Trading Nation."

Gibbs' bullish outlook is due in part to the company's execution of its "Prime Day" last month, when it posted sales that handily beat expectations.

"If you are going to pay triple-digit earnings valuations, so clearly this is not a value stock, even if it is trading at a little bit of a discount right now. It is definitely growth, but when we are looking at 130 percent earnings growth for next year ... they're still hitting their targets; we still see this as a safe bet," Gibbs added.

Though in the short-term the stock may suffer, said Gina Sanchez, CEO of Chantico Global, the long-term story still appears positive.

"They definitely have a lot of room to grow. And if you look at the way the economy continues to go, I think that that plays into the hands of Amazon, who has been massively taking share in the retail space," Sanchez said Friday on "Trading Nation."

In the long term, she said part of the stock's fate lies in how some large investments that the company has made will pan out. Amazon announced last month that it was buying Whole Foods for $13.7 billion, marking its largest acquisition ever should the deal close.

In another sign of expansion, CNBC reported in July that the company was making strides in the health-care space with a new, so-called stealth team dedicated to such efforts.

If investors are thinking strictly in the short term, Sanchez said, "you might not be very excited about buying Amazon today, at this price. But if you are willing to sit this through, there is definitely more room to grow in this story."

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Disclosure: Erin Gibbs does not personally own shares of Amazon, nor does her family, but a portfolio she manages holds it.

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