AMZN - Amazon: Day 2 Is Here And It Is Great News For Shareholders
2024-06-10 06:56:14 ET
Summary
- Amazon has shifted its focus towards profitability and rewarding shareholders. Operating income has grown 221% year-on-year, and management has promised to manage share dilution efficiently.
- The company grew in eCommerce, Cloud, and Advertising, with the latter surpassing the size of YouTube's advertising business. In my view, this shows management can execute with excellence.
- Potential further catalysts for AMZN stock include a return to a low-interest rate environment and the possibility of the company starting to pay a dividend.
- "Day 1" is integral to Amazon's culture. Some investors worry that "Day 2" means the end for the company, but I disagree. I see at least a 30% upside in Amazon's stock from current levels.
Investors in Amazon.com, Inc. ( AMZN ) will be familiar with the company's " Day 1 " culture. This relates to the ability of Amazon to serve customer needs with innovative solutions, and focus on long-term category growth rather than short-term results. When Jeff Bezos decided to resign as CEO of Amazon, some analysts argued the company would enter "day 2", without the guidance of its original founder. In this article, I will discuss how I believe Amazon has indeed entered a new phase of growth, but I believe this will result in the creation of superior shareholder value.