To The Moon

After more than doubling its warehouse space over the course of the COVID-19 pandemic, Amazon.com Inc (NASDAQ:AMZN) is dealing with overstaffing issues, but one analyst believes it's already priced into the stock.

What To Know: Truist Securities analyst Youssef Squali is looking through Amazon's excess capacity concerns and toward a future of increased efficiency.

"We think it's going to take them about 12 months or so to absorb that capacity ... and as you look through that, the story continues to look really attractive," Squali said Tuesday on CNBC's "Squawk On The Street."

He argued that said concerns are already priced into Amazon's current valuation and moreover, he suggested the stock has fallen too far given the concerns at hand.

"Now [Amazon] is trading literally at 10 times cash flow, which we haven't seen literally since the IPO 20 years ago," Squali said.

See Also: If You Invested $100 In Bitcoin, Apple, Microsoft, Tesla And Amazon 5 Years Ago, Here's How Much You'd Have Now

Although he acknowledged the stock could continue to trade lower with the overall markets, Truist is recommending investors buy or add to Amazon stock at current levels.

"Consumer confidence remains really strong and to the extent that that sustains itself, we think it's just a matter of time before, again, that excess capacity is absorbed and margins start ticking up again," Squali said.

AMZN Price Action: Amazon has traded between $2,025.20 and $3,773.07 over a 52-week period.