Buy Amazon Stock Before It Explodes From Q1 Results

(14min)

Summary

  • I maintain a "Buy" rating on Amazon, citing its strong operational momentum, especially in AWS, and a compelling entry point before Q1 2025 earnings.
  • Amazon's Q4 2024 showed impressive financials, with a 61% YoY surge in operating income and robust free cash flow, despite broader market jitters.
  • AWS's growth, driven by AI and custom silicon advancements, positions Amazon well for future expansion, justifying significant CapEx investments.
  • Despite US-China tariff concerns, Amazon's scale and cost mitigation strategies should buffer impacts, making the current stock price undervalued by up to 47%.
  • Amazon's competitive standing and operational scaling look exceptionally strong. Q1 results should catalyze AMZN to the upside, so I keep my "Buy" in place.
Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

My Thesis Update

I initiated my Seeking Alpha investment coverage of Amazon (AMZN) stock in March 2021 with a "Buy" rating, which I kept updating unchanged up to my most recent article published in late December

This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. 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.

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