2024-07-10 17:36:35 ET
Summary
- Previously, I have argued for a buy rating on Amazon.com, Inc. stock considering its improved free cash flow.
- Here, I want to provide a broader view by analyzing the various catalysts afoot.
- The top 3 in my mind are the regionalization of Amazon's fulfillment centers, AWS, and its vast and sticky member base.
- Besides growing EPS, these catalysts, especially the resonance among them, can augment Amazon's competitive moat to a formidable extent.
AMZN stock: buy rating reiterated despite near all-time-high prices
I last wrote on Amazon.com, Inc. ( AMZN ) about little more than 3 months ago (see the screenshot below). As the title of the article ( FCF Turnaround Makes It A Buy ) suggests, I rated the stock as a buy based on the improvement in its free cash flow in recent quarters. More specifically, the article argued:
Amazon.com, Inc.'s free cash flow has significantly improved, suggesting increased profitability and sustainable growth. Analysts expect double-digit earnings growth for Amazon in the next decade. I share the optimism thanks to key growth drivers like the recovery of its e-commerce operations and AWS. The discounted free cash flow model indicates a fair share price of ~$195, signaling the stock is currently close to fair valuation.
Read the full article on Seeking Alpha
For further details see:
Amazon: Swimming In Catalysts