Summary
- Although Amazon Inc stock is rapidly approaching its all-time highs (6% left to reach a new ATH) and its multiples look very high, the company seems undervalued to me.
- In fact, Amazon’s total return has been positive at just 5.2% since the start of the “mini-crisis of 2022”. And its fundamentals have improved significantly.
- As Amazon shifts focus from retail to AWS, it aims to stabilize margins and revenue growth, reducing business cyclicality and risk. This shift could sustain a premium to the current valuation.
- AWS should remain perhaps the most obvious go-to solution for AI firms, in my view. The effects of this development can already be seen in the latest order backlog figures.
- I expect AMZN to reach the $210-$220 per share range by the end of 2024 or early 2025, allowing investors to earn even more than the current 15%+ YTD. So Amazon is a ‘Buy’ to me today.
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