Amazon Isn't Behind. It's Reloading For Its AI Wave (Upgrade)
Summarize this article with:
JR ResearchInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryIt's time to upgrade Amazon (AMZN) to a Buy as the risk/reward shifts favorably in favor of the e-commerce and cloud computing behemoth.AWS remains Amazon's profit engine, delivering 36% margins and over 57% of corporate operating profits, underpinning valuation support.AMZN is aggressively investing in AI, custom chips, and open-sourcing its software stack to defend its moat against rivals like Google, Microsoft, and Oracle.Disciplined capital allocation, and rising FCF margins (>8.5% expected by FY2027) position AMZN for upside at a 30x forward multiple.Doubts about its AI capabilities are understood, Amazon cloud infra leadership places it in pole position to optimize cost efficiencies for customers. hapabapa/iStock Editorial via Getty Images Amazon Underwhelms, As Peers Outshined With AI Narrative A double digit decline since my last Amazon writeup (AMZN) sets the stage for some introspection for AMZN investors. What's going on for the Andy Jassy led company, as the stock postedThis article was written byJR Research45.8K FollowersFollowJR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing. He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out. The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, MSFT, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.