Amazon: Buy The Earnings Dip

Summary

  • Despite delivering a triple play for Q2 2025, Amazon.com, Inc. stock is dipping in the after-hours session.
  • Despite short-term volatility, I remain bullish on Amazon’s long-term prospects because of robust retail, cloud, and advertising momentum, plus promising AI initiatives.
  • My updated valuation model estimates AMZN's fair value at ~$214/share, with a 5-year price target of ~$456 per share, implying a 15.2% CAGR return.
  • I rate Amazon a Buy in the $220s, recommending staggered accumulation for long-term investors seeking attractive risk-adjusted returns.
  • Looking for a helping hand in the market? Members of The Quantamental Investor get exclusive ideas and guidance to navigate any climate. Learn More »

Exterior view of the Amazon Logistics delivery agency in Velizy-Villacoublay, France

HJBC/iStock Editorial via Getty Images

Analyzing Amazon's Q2 2025 Report

In light of its Q2 2025 earnings, Amazon.com, Inc. (NASDAQ:AMZN) stock is trading down by around 5%, despite a triple-play quarter from the tech conglomerate:

  • Net Sales: $167.7B [up +13% y/y, vs. est. $162.1B].

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This article was written by

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I am Ahan Vashi, a seasoned investor with professional background in equity research, private equity, and software engineering. I currently serve as the Chief Financial Engineer at The Quantamental Investor, a community pursuing financial freedom through bold, active investing with proactive risk management.

TQI was established in July 2022 with a singular mission to make investing simple, fun, and profitable for all investors. In alignment with this mission, we publish premium equity research reports on Seeking Alpha - research library - performance tracker. However, there's a lot more on offer within our investing group - features include highly-concentrated, risk-optimized model portfolios that meet investor needs across different stages of the investor lifecycle, access to proprietary software tools, and group chats. Learn more

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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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