Amazon: $3 Trillion Is A Matter Of Time

Summary:

• Amazon’s market cap exceeds $2.4 trillion, driven by strong performance in AWS, Prime, and retail. I believe AMZN has way more room to run.
• Q3 FY2024 results show impressive revenue and operating income growth, with significant contributions from North America retail and AWS.
• Amazon’s robust cash flow and $10 billion share buyback program highlight financial strength and management’s confidence in future growth.
• I believe that despite competitive risks, Amazon’s diversified business model, AI investments, and logistics efficiency support a “Buy” rating with a 17.5% upside potential.
• If Amazon continues to outperform today’s consensus, a market cap of $3 trillion would only be a matter of time.

My Thesis Update

Since I started my coverage of Amazon Inc (NASDAQ:AMZN) here on Seeking Alpha in March 2024, the stock has managed to beat the S&P 500 Index (

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.

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.

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