MSFT - Amazon: Why I'm Still Buying And Why You May Want To As Well
2024-07-16 17:10:53 ET
Summary
- Amazon.com, Inc. stock is up 28% on a year-to-date basis and 44% on a 12-month basis, yet it's still a bargain.
- Zooming out, Amazon has lagged in performance to all of its Mag 7 peers significantly in the past 5 years.
- Amazon's transition from a pure growth play to a more mature company with meaningful margin expansion has strengthened investors' confidence.
- The reignited AWS growth fueled by integration of AI applications and the Advertising segment is expected to drive growth in the years to come.
- I see Amazon as one of the best stocks money can buy in the mega cap space, thanks to a 25% discount to its historical OCF valuation.
Back in December 2023, I set a 2024 price target for Amazon.com, Inc. ( AMZN ) shares to hit $220 . This was challenged by many fellow investors, saying that I am too optimistic about the company's prospects following a period of stellar price appreciation after the 2022 slump.
Indeed, the stock is up 28% on a year-to-date basis, and 44% on a 12-month basis, rewarding shareholders (including myself) handsomely....
Amazon: Why I'm Still Buying And Why You May Want To As Well