Amazon Q2: Almost Flawless Performance, Misunderstood By The Market

Kenio Fontes
1.02K Followers

Summary

  • Amazon.com, Inc.'s Q2 beat expectations on revenue and EPS, but shares fell due to conservative Q3 operating income guidance. An overreaction in my view.
  • The company is unlocking value through margin expansion, efficiency gains, and innovation in AI, robotics, and logistics, supporting a strong long-term thesis.
  • Amazon's diversified growth engines, from AWS to Prime Video and Project Kuiper, provide significant optionality and exposure to secular trends.
  • Despite near-term volatility, AMZN stock trades below historical valuation multiples, offering a compelling margin of safety and justifying my reiterated Buy rating.

Amazon Germany Services GmbH

FinkAvenue

A huge e-commerce event, more than 1 million robots, various AI-related features, high viewership for the NASCAR Cup on its streaming service, and advances in its satellite Internet project. That's not all, but these are factors present in

This article was written by

1.02K Followers
Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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