Amazon (NASDAQ:AMZN) has left an indelible mark on global commerce, sculpting the realms of e-commerce and cloud computing. Yet, as the echoes of a surge driven by Covid-19 begin to soften, the e-commerce giant faces the daunting task of surpassing its own unprecedented growth.
During Q2 of 2024, revenue edged up by a modest 10% to $148 billion, marking a notable deceleration from the 40%-plus strides witnessed in the pivotal years of 2020 and 2021, falling short of Street prognostications.
Despite the deceleration, a prominent investor, Kody’s Dividends, remains resolute in their optimism, contending that Amazon’s growth narrative is far from complete.
Sharing his insights, Kody expounds, “Amazon is a finely tuned business machinery. Every facet of the corporation exhibited robust growth in the recent quarter.”
“Amazon’s unwavering commitment to deliver premier price, selection, and convenience for its patrons has yielded fruit, propelling unit sales, advertising sales, and subscription services revenue to higher altitudes,” the investor continued.
Furthermore, Kody accentuates that Amazon is poised on the cusp of numerous growth catalysts. Its supremacy in e-commerce continues to extend its reach globally, seizing an escalating piece of the total sales pie.
Amazon Web Services (AWS) emerges as a cornerstone growth engine. “As the premiere global player in cloud computing, AWS stands as the foremost beneficiary of the burgeoning global IT expenditure,” per Kody.
For Kody, these robust fundamentals paint Amazon as an enticing investment prospect, particularly with shares seemingly trading at a 40% discount to what the investor deems their fair value based on Price-to-Operating Cash Flow.
If Kody’s calculations hold true and Amazon aligns with growth projections, the online titan could be staring at a staggering 114% upward trajectory by the conclusion of 2026. At present, Kody accords AMZN shares a Strong Buy rating.
Echoing this upbeat outlook, Wall Street analysts mirror the sentiment, presenting Amazon as a Strong Buy per TipRanks data. The stock’s consensus target price of $222.88 portends a return potential of 19%.
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Disclaimer: The views expressed herein are solely those of the showcased investor. The article is meant for informational purposes exclusively. Thorough due diligence is imperative before engaging in any investment ventures.