Amazon: Be Greedy When Others Are Fearful

The Value Portfolio
Investing Group Leader

Summary

  • Amazon delivered strong earnings and double-digit revenue growth, but shares dipped after-hours due to cautious guidance and slower AWS growth.
  • AWS remains a core strength, achieving 17% YoY growth and high margins, with massive capex planned to capture future AI demand.
  • The ad business is rapidly expanding, up 23% YoY, leveraging Amazon's unique customer connection and becoming a significant profit driver.
  • Despite a sharp FCF decline from heavy investment, Amazon's robust income growth, margin expansion, and strategic positioning make it a compelling long-term buy.

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Amazon.com, Inc. (NASDAQ:AMZN) delivered strong earnings but saw its share price decline as the market was likely concerned about its guidance and AWS growth rates. That's despite strong performance in the ad business, which we've already

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This article was written by

The Value Portfolio
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The Value Portfolio specializes in building retirement portfolios and utilizes a fact-based research strategy to identify investments. This includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations. He invests real money in the stocks he recommends.

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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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