Trading at a 30% discount and near a turning point, says an analyst The cloud business for any company is a huge opportunity. These megacap tech names haven't suffered the pain like the rest of the market. He likes Amazon (and MSFT) now, the two megacaps that will ride out current volatility.
Are posting strong revenue growth in cloud, but thin margins in retail. Cloud is competitive from MFST, but there's room to grow in the cloud business. Cloud is basically subsidizing retail, and the high PE make the stock unattractive. Amazon has benefitted from lockdowns, but also faces higher wages, more unionization, and rising input costs. Amazon is investing in AI which is a cost.
It was becoming cheap a month ago so there is good value. He has been buying partial shares on the Canadian side. Price/Growth is 48% so a high P/E is acceptable.
Believes company has issues with anti-trust lawsuits.
Rising interest rates will negatively affect tech company.
Other options such as Alibaba are better options.
Recommends selling.
Lots of room to expand. Reported excellent earnings last week, though there was an adjustment given their Rivian holdings. Still, impressive. They are growing into their earnings, so their PE is coming down. This happens with great companies like Apple and Facebook before.
Shares jumped 13% after its report. Some good things in that report, starting with their cloud business, growing fast. You should buy and buy it through a fractional broker. However, shares have returned to levels 2.5 weeks ago, a sign of a manic-depressive stock market.
They report Thursday. Once a shining stock, it has lost its lustre. It's the poster child of what this market hates: inconsistent high growth. But he is overlooking this period because of the strength of Amazon's advertising, retail, web services. Be patient and take some hits. Wait until you see this quarter before you buy.
Ten years ago you didn't think cloud storage would be a big part of their business. Now, they're trying to enter groceries and other businesses. It's a core holding and not expensive compared to other tech stocks. Clouds on the horizon are anti-trust action, but otherwise, this is a fine company.
(A Top Pick Oct 13/20, Down 15.8%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with AMZN has triggered its stop at $2900. To remain disciplined, we recommend covering the position at this time. We will watch for another entry point.
Has a clean balance sheet and looks solid Has a great growth rate. Although it's huge it can still adapt. If buying,, layer into it by starting with a partial position and then adding. Analysts have 59 buys, 0 holds and 0 sells. (Analysts’ price target is $4121.98)
Cloud computing business valuable however, retail business doesn't excite (capital intensive).
Current valuation makes company hard to justify investment.
30x P/E ratio would be a better valuation to buy at.
Amazon down 15% from all time highs.
Advertising, fulfillment, delivery & networking business units continue to grow.
Ability to service customers getting better.
Amazon is now the highest employee payer in the logistics business, which makes it very difficult to compete with.
Huge growth opportunities in retail, advertising, cloud and AI business units.
Investments will yield great results. Formula used over last number of years is to make huge investments and then reap the benefits. New fulfillment centres was the focus in 2021. Growing about 25% per year. No dividend. (Analysts’ price target is $4117.90)
Amazon.com, Inc. (AMZN) Frequently Asked Questions
What is Amazon.com, Inc. stock symbol?
Amazon.com, Inc. is a American stock, trading under the symbol AMZN (previously AMZN-Q on Stockchase) on the NASDAQ (AMZN). It is usually referred to as NASDAQ:AMZN or AMZN