Selling Amazon On Recession Risks (Downgrade)
Summary
- Amazon's overreliance on AWS and potential regression in e-commerce segments pose downside risks amid rising unemployment and consumer spending pullbacks.
- Historical net margin trends and economic indicators suggest a challenging environment, with potential stagflation and reduced holiday sales growth.
- Despite AWS resilience, valuation concerns arise as North America's performance faces economic risks that threaten Amazon's bottom line.
- Given these factors, I am reversing my Buy recommendation, awaiting further economic data into 2025.
AntonioSolano
I was positive on Amazon (NASDAQ:AMZN) stock almost a year ago, and the share price has improved by around 29%. I am now reversing my outlook on the company and will explain why I believe the downside
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