Amazon: Investors Wanted Pure Play AWS, And Now They're Getting It

(20min)

Summary

  • For the last decade, investors have longed to invest in Amazon.com, Inc.'s AWS as a standalone company.
  • Today, with Amazon's notably depressed valuation, I contend that we can buy AWS for ~$2T and get the rest of the business for free.
  • With decades of growth runway still ahead, which will likely take AWS closer to $500B in sales than $100B in sales, I believe paying $2T for AWS is attractive.
  • In short, I believe buying the ticker symbol AMZN today equates to paying for AWS alone and getting ecommerce, logistics & fulfillment, prime, and ads for free. As Amazon matures and expands its margins in the years ahead, I believe this will be obvious with the benefit of hindsight.
  • Looking for a helping hand in the market? Members of L.A. Stevens Research get exclusive ideas and guidance to navigate any climate. Learn More »

Shot of Data Center With Multiple Rows of Fully Operational Server Racks. Modern Telecommunications, Artificial Intelligence,server room,3d rendering

Oselote

  • Note: This was written and published while Amazon.com, Inc. (NASDAQ:AMZN) traded at $205/share. The math has marginally shifted, though the thrust of my thoughts remains the same.

Finally, We Can Buy AWS As A Standalone Business

The central

Join L.A. Stevens Research for industry-leading research designed to make you a more successful and profitable investor.

This article was written by

17.59K Followers

Louis Stevens is a former U.S. Army engineer officer who holds an MBA and a BA in political science. Since beginning his journey publishing investment research, Louis has become one of the leading analysts in the investing community, ranking in the top .1% according to TipRanks: https://www.tipranks.com/experts/bloggers/louis-stevens.

Louis created L.A. Stevens Research in which he runs the LAS Index, a basket of stocks chosen via his proprietary method for investing, which has consistently outperformed the indices since its launch.

Whether you're just getting started, a busy professional, or seasoned veteran running a fund of your own, Louis has served folks like yourself throughout his career in equity research and investing. 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
--