Amazon's Robot Army Will Mint Money For Shareholders

(10min)

Summary

  • Amazon continues to outperform expectations, with strong Q1 results, robust AWS growth, and margin expansion driven by tech and robotics investments.
  • AWS is the unstoppable growth engine, accelerating to a $117B run rate. With 85% of IT still on-premise, its dominance in cloud and AI is just beginning.
  • Amazon's multi-layered AI strategy, featuring custom Trainium chips and its "Switzerland of AI" Bedrock platform, is already a multi-billion-dollar business growing at triple-digit rates.
  • The stock remains undervalued with a clear path to my $251 price target, driven by underestimated earnings power, robotics-led efficiencies, and continued margin expansion across all segments.

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 (NASDAQ:AMZN) stock in March 2021 with a "Buy" rating, which I kept updating unchanged up to my most recent article published

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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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