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- Amazon’s shares are trading close to all-time highs due to successful business performance and improving macroeconomic environment.
- Strong Q1 results and positive economic indicators suggest Amazon may continue to perform well in Q2 and beyond.
- Despite growth opportunities, Amazon faces risks from geopolitical tensions and potential overvaluation, leading to a non-existent margin of safety for investors.
Amazon’s (NASDAQ:AMZN) shares have greatly appreciated since the start of the year and are currently trading around their all-time highs thanks to the successful performance of the company’s business that was fueled by the improving macroeconomic environment. Thanks to the resilience of the American economy, Amazon now has a decent chance of releasing another successful earnings report on August 1 and boosting investors’ confidence at the same time. However, while in the short term there are reasons to be optimistic about Amazon, the company faces several rising challenges that could undermine its growth story in the long run.
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