Investor’s Stance on Amazon

Hightower Advisors’ investment strategist Stephanie Link is fervently acquiring Amazon.com Inc (AMZN) shares, seeing the stock at its most compelling valuation in years.

Amazon’s Strategic Positioning

Link remarked that Amazon Web Services (AWS) is poised for accelerated growth, expecting a surge from the 12% reported last quarter to 15-16% in the upcoming results, with a potential further increase in the latter half of the year.

Link affirmed that Amazon’s retail margins are ascending, and there remains substantial potential for further margin enhancement, particularly as costs decrease.

According to Link, the pandemic-induced spending surge to meet fulfillment demands has subsided, endowing the company with substantial operating leverage.

Furthermore, Link contended that Amazon stands to benefit from the revival of advertising revenues in 2024, asserting that this aspect is undervalued compared to the broader FAANG complex.

Wall Street Sentiments Favor Amazon

Amazon is the favored stock among Wall Street analysts for 2024. Several members of the Halftime Report panel have expressed favorable views on the Jeff Bezos-founded company.

Virtus Investment Partners’ Joe Terranova hinted at the possibility of purchasing Amazon stock when he rebalances the Virtus Terranova U.S. Quality Momentum ETF (JOET) next week.

Stock Performance

AMZN Price Action: With Amazon shares up more than 60% over one year, the stock was up 0.74% at $157.18 at the time of publication.

Photo: courtesy of Amazon.