Joe Raedle
- Revenue growth is mostly steady; the favorable growth outlook in AWS is balanced a bit by lower growth acceleration in ecommerce due to a weaker consumer environment.
- Amazon posted a rare EBIT margin guidance disappointment for Q3 FY24. However, an easing of global container freight rates and internal initiatives to lower cost of sales are margin levers.
- After a strong period of earnings-driven growth, I believe structural margin growth can lead to multiple expansion in the stock.
- The technical pullback I was waiting for on Amazon has come in, which, I think, makes this an ideal moment for buys.
Performance Assessment
In my last article on Amazon (NASDAQ:AMZN) (NEOE:AMZN:CA), I had a bullish slant but stopped short of rating the stock a ‘Buy’ due to a small correction in the technical action of the stock vs the S&P 500 (SPY) (SPX). Since then, the stock has slightly underperformed the market index:
READ FULL ARTICLE HERE!
