2024-07-26 07:00:00 ET
Summary
- Tech earnings season is causing increased volatility, creating great bargain buying opportunities for Amazon investors.
- When combined in a portfolio with high-yield dividend aristocrats, Amazon can deliver for investors.
- Amazon's growth potential is massive, courtesy of seven growth markets over $1 trillion in size.
- Amazon's growth spending of $1.1 trillion through 2029 is almost as much as the US government's and should boost free cash flow to around $200 billion.
- $500 billion in net cash by 2029 and rivers of free cash flow make a dividend likely within a few years, and buybacks and dividend announcements could pop the price 15% to 30% the day they arrive. AMZN's 12-month return potential is 80%, three-year return potential is 112%, five-year return potential is 345%, and six-year return potential is 575%.
Earnings season is kicking off with good news that isn't being met with falling prices.
Seeking Alpha
Alphabet's (GOOG) ( GOOGL ) results were solid, yet the market wasn't impressed, at least initially.
But what matters in the long term is that Alphabet's cloud computing sales were strong, topping $10 billion in a quarter for the first time.
This bodes well for Amazon ( AMZN ), my No. 1 recommendation in deep value hyper-growth blue chips. A name that I've recently bought 150 more shares during the recent sell-off.
Green = filled (Dividend Kings Adam's ZEUS Limits Tools )
I plan to set new single-day limits on the day of earnings, just in case Amazon sells off, in alphabet style, on objectively solid results....
Read the full article on Seeking Alpha
For further details see:
3 Reasons Dividend Investors Should Buy Amazon Before Earnings