Amazon: Potential Bear Trap Is Here


  • Despite trading at over 60 times its forward earnings, it appears that Amazon’s stock has all the chances to appreciate in the following quarters.
  • It’s premature to say that the company’s growth story is coming to an end since there’s an indication that several Amazon businesses would continue to grow at an aggressive rate.
  • As long as the global economy continues to improve after a relatively weak performance in the first half of 2022, Amazon has all the chances to create additional shareholder value.

Canadian PM Trudeau Participates In An Announcement By Amazon In Vancouver

Jeff Vinnick/Getty Images News

There’s this misconception that Amazon’s (NASDAQ:AMZN) growth story is coming to an end since the top-line growth rate of the business is gradually decreasing which for some makes it hard to justify opening a long

Amazon's Stock Performance

Amazon’s Stock Performance (Seeking Alpha)

Advertising Revenue at Amazon and Meta in 2022

Advertising Revenue at Amazon and Meta in 2022 (CNBC, Amazon and Meta Earnings Reports)

Amazon's DCF Model

Amazon’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Amazon's DCF Model

Amazon’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Amazon's Consensus Price Target

Amazon’s Consensus Price Target (Seeking Alpha)

Disclosure: I/we have a beneficial long position in the shares of META, GOOG 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.

Additional disclosure: Bohdan Kucheriavyi and/or BlackSquare Capital is/are not a financial/investment advisor, broker, or dealer. He’s/It’s/They’re solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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