Khanchit Khirisutchalual
How you think about Amazon.com, Inc. (NASDAQ:AMZN) as an investment might depend on the timeframe you are looking at (or the time when you bought the stock). Everyone that bought Amazon more than 10 years ago will probably
The Amazon Paradox: Growth Potential, But Stalling Stock Price
Summary
- Amazon's growth remains solid, but the stock is consolidating after years of high valuation multiples and recent underperformance versus the S&P 500.
- Retail tariffs and macro uncertainty pose risks, especially to Amazon's retail segment, though AWS, advertising, and subscriptions continue to drive growth.
- AWS and AI offer substantial long-term opportunities, but much of Amazon's future value depends on continued high growth and normalization of capital expenditures.
- Given fair valuation and limited near-term upside, I maintain a 'Hold' rating on Amazon and recommend caution for investors in the coming quarters.
My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of META 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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