Amazon: Take Full Advantage Of The Myopic Selloff

Summary

  • Amazon notched a surprising post-earnings decline, as AWS grew less robustly than its hyperscaler peers.
  • It's too early for us to ascertain that AWS's growth could fall further behind as its rivals catch up.
  • Amazon's margin pressure could be affected by the tariffs impact. However, AWS has always been the most pivotal operating income driver.
  • Hence, while the market sold off to reflect caution, I am of the opinion that AWS remains a pivotal growth pillar for the company.
  • With the stock not valued expensively and remaining in a long-term uptrend, investors should take full advantage of the buying opportunity.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »
Amazon

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Amazon: Underperformed Hyperscaler Peers As AWS Disappoints

Something interesting happened last week. I think we saw for ourselves as the market went on an earnings-driven buying spree on tech titans such as Microsoft (MSFT) and Meta Platforms (

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

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He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, GOOGL, MSFT, 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.

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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