CA - Amazon Remains Undervalued Despite Strong Growth Prospects

2024-06-17 14:08:40 ET

Summary

• Amazon is not perceived as a high-growth company anymore, but it has massive opportunities to invest in profitable ventures.
• These growth opportunities are highlighted by the CEO in his recent letter to shareholders.
• I expect that Amazon Marketplace will perform better, AWS earnings will improve, and the company will benefit from its AI investments.
• The stock price is not reflecting the company's growth potential. Therefore, I assign a "Buy" rating to the stock.

Introduction

I have been following Amazon ( AMZN ) ( AMZN:CA ) for a long time. Although the stock price has surged, the company has not participated in the AI-mania like other technology stocks have. However, I believe Amazon has growth opportunities that are at least as interesting as those of the other Magnificent 7.

While the core business is often viewed as the Amazon Marketplace, Amazon has been investing in other high-growth and high-profitability areas. I believe the company is seeing and will continue to see benefits from these investments....

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