hapabapa
Summary
- Amazon could be summarized with one word: leader. Leader of e-commerce and cloud space. Both worlds facilitate its top-tier business model. However, competition from MS Azure is rising.
- The Company once again proves its effectiveness in navigating a relatively harsh consumer environment and keeps on growing the revenue scale even when faced with noticeable ASP contraction.
- The dynamic rise of generative AI tools demands substantial computing power, driving the AWS market.
- On top of that, AMZN’s valuation is detached from its long-term ability to generate cash flow. Amazon is not ‘overvalued’ as many claim – here’s why.
- Amazon has already proven its cash flow generation potential, but I believe that the best is yet to come.
Amazon (NASDAQ:AMZN) doesn’t need an introduction. It is the king of e-commerce, the leader in cloud computing, and the ever-growing marketplace. The ‘Earth’s Most Customer-Centric Company’.
Each title applies. I’ve been an Amazon shareholder for quite some time and have been amazed by the numerous voices stating that the Company is overvalued, a ‘sell’, or failing to meet expectations.
From time to time, it’s worth taking a step back and reviewing whether the investment thesis has changed, either through the business financials, strategy, model, or valuation. That’s what we’re going to do today; enjoy the read!
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