Amazon: A 'Blue Chip 2.0' Is Born

Geneva Investor
1.86K Followers
(12min)

Summary

  • Under CEO Andy Jassy, Amazon has moved from growth to profitability, with an 86% operating income increase from 2023 to 2024.
  • Post-Q4 2024 earnings, a sell-off occurred due to cautious 2025 guidance, but I see it as a buying opportunity given there is no threat to Amazon's core businesses.
  • Amazon's growth in advertising and subscriptions highlights its "Blue Chip 2.0" status, in my view, merging stability and high profitability with innovation.
  • Risks include potential AWS slowdown and macroeconomic challenges, but I think Amazon's proven profitability and growth balance make it a valuable long-term investment.

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

I have been a shareholder of Amazon.com, Inc. (NASDAQ:AMZN) since 2017. In my investment journey, this was the first single stock I entered with a sizable position, having previously been mostly exposed to funds.

This article was written by

1.86K Followers
Investor based in Geneva, Switzerland. Follow me on Twitter @GenevaInvestor for daily macro & investing nuggets. I write about macroeconomics, global trends, and what I believe are asymmetric investment opportunities in the market. I have a Master's degree in Business Management. Currently bullish AMD, HIMS, PLTR, US equities, Bitcoin. Friend "Rex Investing" is also a contributor to Seeking Alpha. All opinions and analysis on SA are exclusively my own.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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