Amazon: A New-Year Gift Valuation

Summary:

• Amazon’s dual dominance in e-commerce and cloud infrastructure, coupled with a strong focus on profitability, maintains a ‘Strong Buy’ recommendation.
• Significant progress in profitability and strategic dominance in cloud infrastructure, with a 31% market share, highlight Amazon’s robust financial health and competitive edge.
• Valuation analysis shows an attractive forward P/E ratio and a fair share price target of $271, indicating substantial undervaluation.

Introduction

Amazon (NASDAQ:AMZN) continues dominating in two industries that are considered one of the megatrends of the modern world: e-commerce and cloud infrastructure. Therefore, it is not very surprising that my September 2024 ‘Strong Buy’ recommendation aged quite well.

The

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN 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.

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