Amazon: This Is The Dip You Probably Waited For

(11min)

Summary

  • Amazon.com, Inc.'s recent stock price correction offers a great buying opportunity due to strong business expansion prospects and improved valuation.
  • Amazon's consolidated sales grew 10% YOY, with significant margin improvements across segments, leading to a 60% YOY surge in EBIT and 86% rise in EPS.
  • AWS's heavy CapEx in AI infrastructure is expected to drive future monetization, with analysts projecting significant EBITDA growth and easing supply constraints in 2H 2025.
  • Despite short-term margin pressures, Amazon's strong market position and projected EPS growth justify a premium valuation, making it a compelling buy for long-term investors.
  • I get a fair equity value of ~$2.99 trillion for AMZN stock. That's ~45.14% above its today's market cap, giving “GARP hunters” a nicely discounted opportunity.
  • I do much more than just articles at Beyond the Wall Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

Intro & Thesis

Since the time I upgraded Amazon.com, Inc. (NASDAQ:AMZN) stock back to “Buy” in January last year, I constantly hear/read some people saying that “the business is great, but the stock's

Hold On! Can't find the equity research you've been looking for?

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing! There is a free trial and a special discount of 10% for you. Join us today!

This article was written by

12.81K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

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.

Recommended For You

About AMZN Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on AMZN

Related Stocks

SymbolLast Price% Chg
AMZN
--
AMZN:CA
--