Amazon: Worst Is Behind, Still A 2022 Top Pick

Feb. 09, 2022 12:34 AM ETAmazon.com, Inc. (AMZN)META, GOOG, GOOGL, MSFT18 Comments

Summary

  • Despite mixed Q4 results, Amazon has been up each trading day since earnings, challenging the thesis that the rally would be short-lived.
  • I think that Amazon is finally catching a bid because the market is choosing to look a few months past the short-term challenges.
  • I list several reasons, from business cyclical to valuation and historical price performance, that point at Amazon as a strong buy today.
  • Looking for a helping hand in the market? Members of Storm-Resistant Growth get exclusive ideas and guidance to navigate any climate. Learn More »

Amazon van driving on the freeway

Sundry Photography/iStock Editorial via Getty Images

A few trading days after a polarizing holiday quarter earnings report, the market has started to send a clear message about Amazon (NASDAQ:AMZN). Despite mixed results, shares have climbed 15% from the pre-earnings

Sales Growth, Amazon

Sales Growth, Amazon's Online Stores (DM Martins Research, data from company reports)

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Data by YCharts

2025 PEG by FAAMG Stock

2025 PEG by FAAMG Stock (DM Martins Research, data from Seeking Alpha)

Chart
Data by YCharts

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This article was written by

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Tracking Economic Inflection Points To Guide Your Asset Allocation Strategy

Daniel Martins is a Napa, California-based analyst and founder of independent research firm DM Martins Research. The firm's work is centered around building more efficient, easily replicable portfolios that are properly risk-balanced for growth with less downside risk.

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Daniel is the founder and portfolio manager at DM Martins Capital Management LLC. He is a former equity research professional at FBR Capital Markets and Telsey Advisory in New York City and finance analyst at macro hedge fund Bridgewater Associates, where he developed most of his investment management skills earlier in his career. Daniel is also an equity research instructor for Wall Street Prep.

He holds an MBA in Financial Instruments and Markets from New York University's Stern School of Business.

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On Seeking Alpha, DM Martins Research partners with EPB Macro Research, and has collaborated with Risk Research, Inc.

DM Martins Research also manages a small team of writers and editors who publish content on several TheStreet.com channels, including Apple Maven (thestreet.com/apple) and Wall Street Memes (thestreet.com/memestocks).

Disclosure: I/we have a beneficial long position in the shares of AMZN, MSFT, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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