Amazon’s Bullish Outlook with Growth in AWS and Advertising

marketpre
10-17

$Amazon.com(AMZN)$ Couldn't agree more. AMZN stands out to me as one of the most appealing of the MAG7.

I say this because AWS and advertising are growing at insane rates and these are two sectors that will be invaluable in the future. Amazon is also in a great position to have some of the most user-targeted advertisements out there because they are able to track consumer spending, I'm not expecting their ad business to halt anytime soon. Additionally AWS is devouring market share and AMZN is investing in it heavily going forward.

AMZN is also going to benefit MASSIVELY from development in robotics. This would boost the efficiency and cost effectiveness of their retail sector tremendously.

I am surprised that they missed the revenue forecast, however in the sectors that are most important they slaughtered. This gives me great conviction in their business and overall I find the ER quite bullish.

In my opinion Amazon's weaknesses are guidance and lack of capital return. I think they would benefit greatly from capital return and increase shareholder sentiment however I have complete faith in their fundamentals so this doesn't deter me personally.

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Comments

  • KSR
    10-17
    KSR
    👍
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