Amazon's stock has struggled compared to other "Magnificent 7" stocks, but offers potential value
From Nasdaq: 2024-10-17 11:33:00
Amazon’s stock has struggled over the last few years compared to other “Magnificent 7” stocks, remaining stagnant while earnings have grown. Analysts see potential in its cheap valuation and upcoming earnings report, highlighting strong growth in e-commerce and cloud computing segments. Compared to Alphabet and Microsoft, Amazon offers a more attractively priced stock with continued growth prospects.
Despite Amazon’s stock price challenges, the company has consistently beaten earnings expectations with strong profit and sales growth. Amazon Web Services remains a dominant force in cloud computing, with significant revenue growth and margin expansion. Analysts are optimistic about double-digit year-over-year growth in e-commerce, though international challenges and competition remain key concerns for the retail giant.
In comparison to other tech giants like Alphabet and Microsoft, Amazon’s stock offers potential value with a lower forward earnings multiple. While other companies like Alphabet leverage AI expertise and Microsoft integrates cloud services with software, Amazon has lucrative new businesses like Advertising and Prime Video. With a steady business growth trajectory and leading cloud market position, Amazon presents a compelling long-term investment opportunity.
For just $1, investors can access Zacks’ portfolio services and see all their picks for 30 days, without any obligation to spend more. Zacks offers services like Surprise Trader and Technology Innovators, which have closed numerous positions with double- and triple-digit gains. Thousands have taken advantage of this offer to explore Zacks’ recommendations and investment insights.
Join thousands of investors who have benefitted from Zacks’ picks and recommendations for just $1, with access to services like Surprise Trader and Technology Innovators. Explore Zacks’ portfolio services and see how they closed 228 positions with double- and triple-digit gains in 2023 alone, offering valuable insights and investment opportunities for savvy investors.
Read more at Nasdaq: Amazon Earnings Preview: The Weakest of the Magnificent 7?