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AMZN Remains Compelling Despite The Recent Recovery - Wait For A Dip Buying Opportunity
We previously covered Amazon.com, Inc. (NASDAQ:AMZN) (TSX:AMZN:CA) in May 2025, discussing why the stock was extremely cheap near 10Y P/E
Amazon's Rally Still Has Legs - Robust Commerce/AWS Prospects
Summary
- AMZN remains a compelling long-term investment thesis due to the robust AWS and commerce prospects attributed to the new GenAI revolution and the improved operational efficiencies.
- This is on top of the robust Prime Day results in Q3'25 and (likely) another sales event in October 2025, with it well balancing the tariff-induced uncertainties.
- Even so, it goes without saying that AMZN's recent rally may have occurred overly fast and furious, with the premium valuations triggering a minimal margin of safety.
- While the ascending triangle indicator implies further upward momentum in the near term, we believe that investors may be better off waiting for a deep pullback for long-term accumulation.
- We shall further discuss our Buy Case in detail.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, GOOG 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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