Amazon: One Of The Most Underrated Megacap Stocks


  • Amazon reports strong Q1’24 results, exceeding guidance and consensus expectations on both the top and bottom-line.
  • AWS sees positive trends as companies have largely completed most of their cost optimization efforts and are now turning to newer initiatives.
  • Amazon plans to increase capital expenditures in 2024 to support the growth of AWS and generative AI.
  • Amazon’s Trainium 2, its latest generation chip for training AI models, will be available in larger quantities in the second half of 2024 and early 2025.
  • Within the Retail segment, we are seeing Everyday Essentials creating more consistent and habitual purchases.

Amazon rainforest and rivers on sunny days

Anderson Coelho

Amazon (NASDAQ:AMZN) reported strong Q1’24 results, with the company’s profitability the main star as it exceeded the top end of its guidance and came in materially higher than consensus.

Trends for AWS are also positive, as management noted that

Analyst’s 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.

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.

Outperforming the Market

Outperforming the Market is focused on helping you outperform the market while having downside protection during volatile markets by providing you with comprehensive deep dive analysis articles, as well as access to The Barbell Portfolio.

The Barbell Portfolio has outperformed the S&P 500 by 60% in the past year through owning high conviction growth, value and contrarian stocks.

Apart from focusing on bottom-up fundamental research, we also provide you with intrinsic value, 1-year and 3-year price targets in The Price Target report

Join us for the 2-week free trial to get access to The Barbell Portfolio today!

Leave a Reply

Your email address will not be published. Required fields are marked *