AMAZON (AMZN) STOCK ANALYSIS: Why It's Still Undervalued Now! Intrinsic Value Update!

TL;DR

Amazon stock is still undervalued based on the company's long-term growth prospects in AI, cloud computing, advertising, and e-commerce, despite its strong performance in recent years.

Transcript

hi everyone this is Victor here welcome back to the intelligent visual channel in this video I'm going to explain why I think Amazon stock is still under volume now based on Amazon's long-term growth prospects in artificial intelligence cloud computing advertising and e-commerce as you may already know Amazon is one of the best performing stocks th... Read More

Key Insights

• 😶‍🌫️ Amazon's stock has performed well in recent years, driven by its strong performance in AI, cloud computing, advertising, and e-commerce.
• 🥳 The company's financial overview shows major revenue contributions from online stores, third-party seller services, and AWS.
• 👨‍💼 AWS is the most profitable business segment for Amazon, contributing a significant portion of the company's operating income.
• 😌 Amazon's future growth prospects lie in the continued expansion of AWS and its advertising business.
• 😃 The company's biggest risks include the profitability of acquisitions, optimization of cloud spending by customers, and macro uncertainties affecting the economy.
• 🍉 Despite these risks, Amazon's long-term goals and prospects indicate the potential for sustained growth.
• 🤪 AWS and advertising are expected to be the major drivers of Amazon's operating income going forward.
• ❓ The company's interest value calculations suggest that Amazon stock may still be undervalued.
• 👨‍🔬 Investing in Amazon stock is a personal decision and should be based on thorough research and analysis.

Questions & Answers

Q: Why did Amazon's stock underperform in the past?

Amazon faced challenges due to over-expansion, employee overhang, and capacity issues, which affected its financial performance and caused underperformance.

Q: What are Amazon's major revenue drivers?

Amazon's major revenue drivers are its online stores, third-party seller services, subscription services (such as Amazon Prime), advertising services, and AWS.

Q: Will Amazon's growth accelerate in the future?

The company's growth prospects in AI, cloud computing, advertising, and e-commerce indicate the potential for accelerated growth in the future.

Q: What are the risks associated with Amazon's businesses?

Some of the risks include the failure of acquisitions and bets on new businesses, optimization of cloud spending by enterprise customers, and macro uncertainties affecting AWS customers' cloud spending.

Summary & Key Takeaways

• Amazon's stock has recovered over 50% year-to-date and has outperformed the S&P 500, but it underperformed in the past due to over-expansion and operational challenges.

• The company has laid off employees and cut expenses to become more efficient, and its businesses have improved since 2022.

• Amazon's major revenue drivers are online stores, third-party seller services, subscription services, advertising services, and AWS. AWS is the most profitable business segment.