Amazon Stock: Cheap Given Its Growth Prospects
Summary
- Amazon.com, Inc. beat Q2 expectations last week, driven by strong AWS and e-Commerce growth, with operating income momentum highlighting robust business execution.
- Despite an 8%+ share drop on Friday, I see a compelling entry point for investors bullish on e-Commerce and Cloud growth prospects.
- Both core businesses, e-Commerce and Cloud, added significantly to Amazon's operating income growth in the second-quarter.
- AMZN stock's valuation undervalues its enormous potential in the Cloud market and significant operating income gains, especially as AWS expands globally.
- Risks center on potential Cloud growth slowdowns, but I remain confident in Amazon as a top growth play amid accelerating enterprise Cloud adoption.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, AAPL, GOOG, META, NVDA 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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