Amazon: Mean Reversion Or Sector Median Drawdown


  • Amazon reported Q4 earnings and closed 2022 on a minor note, while the AWS segment on a stand-alone basis remained resilient.
  • Following the strong growth in data center systems, the focus of global IT expenditures is now expected to shift to cloud solutions, benefiting the AWS business.
  • E-commerce activity might seem normalizing since the pandemic boom, but the secular drivers remain intact.
  • The valuation of Amazon is in the middle point now, and I believe we could still evidence a reversion up to the historic mean, rather than down to the current sector’s median.

Амазонка Германия Сервисез ГмбХ

FinkAvenue/iStock Editorial via Getty Images, Inc. (NASDAQ:AMZN) has disappointed investors with its Q4 2022 earnings by exhibiting lower growth amid worsening macro indicators. This has led to a drawdown in operating profit against the aggressive growth

Amazon search

Amazon (browser search)

Retail e-commerce sales worldwide

Retail e-commerce sales worldwide (Statista)

Retail e-commerce sales worldwide

Retail e-commerce sales worldwide (Statista)

Worldwide IT spending

Worldwide IT spending (Gartner)

Valuation screener

Valuation screener (Seeking Alpha)

History of buybacks

History of buybacks (

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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