- Amazon's margin expansion opportunity for the e-commerce segment brought about by normalisation of supply chain and pandemic challenges is not yet priced into the market.
- International e-commerce brings huge optionality and has long growth potential and brings upside to Amazon's revenues.
- As AWS continues to build on scale and re-invest into the business, I believe that it will continue to improve on its industry leading position in cloud computing.
- With the recent stock split and repurchase programme announcement, as well as improving disclosure on business segments, I am of the view that Amazon's new management is becoming more shareholder friendly.
- Based on my SOTP valuation for Amazon, I derived a target price of $4,850 for Amazon, implying an upside of 44% from current levels.
For further details see:
Amazon: Top Large Cap Idea For 2022