Amazon: Time To Buy The Dip (Archive)
AWS revival, margin levers, and supportive technicals make Amazon’s pullback a compelling buy.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Revenue growth is mostly steady; the favorable growth outlook in AWS is balanced a bit by lower growth acceleration in ecommerce due to a weaker consumer environment.
- Amazon posted a rare EBIT margin guidance disappointment for Q3 FY24. However, an easing of global container freight rates and internal initiatives to lower cost of sales are margin levers.
- After a strong period of earnings-driven growth, I believe structural margin growth can lead to multiple expansion in the stock.
- The technical pullback I was waiting for on Amazon has come in, which, I think, makes this an ideal moment for buys.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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