Summer Sale
50% off Premium Yearly
Opinions Shannon Saccocia, CIO, Boston Private
Amazon.com, Inc.AMZNCOMMENTAug 04, 2023
Stock price when the opinion was issued
As of Aug 28, 2026. Market Open.
You might be interested:
Great earnings (21%) for a reasonable valuation (28x forward PE). PEG ratio is decent. Much more than online shopping -- e-commerce plus AWS, digital advertising, logistics, AI services, custom chips. AWS earnings have exceeded expectations, while AWS has grown 37%. Cloud business is a leader.
Spending in AI is really paying off. Tangible results through faster cloud growth, wider AI deployment, and improving profitability and logistics in fulfillment centres. One of only 5 companies to have touched $3T in market cap. No dividend.
Stan WongIs a big holding of his. The CEO assures stockholders that Amazon's large invest in AI will pay off. AWS could become a trillion-dollar business now that it's using AI; it's already Amazon's most-profitable business, far more than Prime. The CEO expects returns from AI will come faster than AWS. The CEO raised capex higher, but shares still rallied, up 4.58% today.
AWS is a real earnings engine, growth accelerated to nearly 40% (fastest pace in more than 4 years). Enormous AI spending finally translating into faster cloud growth, and translating into profits faster than the competition. Headline profit was inflated by a large paper gain on its investment in Anthropic.
Brianne Gardner
AWS, retail and ads all accelerated in growth while profits hit a record high with operating margins of 13.7%. AWS contributes 61% of operating income and is accelerating rapidly. Has lots of momentum. Even if you cut the backlog in half, you still see outsize growth and market share gains. It gives her confidence in the AI space for Amazon.
This, Microsoft, Google and Meta will be the distribution point of AI to wide adoption. AWS remains the dominant cloud player. OpenAI divorced from MSFT, so it could not be hosted on AWS. AWS is accelerating investments in data centres and chips, which is where the opportunity lies.
(Analysts’ price target is $315.16)
Dan RohintonNew lease on life in the last year. Natural beneficiary of AI and data centres. At these levels, the kind of name you just hold your nose and buy. Not extremely expensive.
Darren SissonsHe expects Amazon and Google to win the AI race. They have the money to build data centres and hire the best talent. He trims when the share price rises, and buys when the price declines. AMZN is one of the best companies in the world and is a long-term hold. Their retail and cloud (the leader) businesses are growing.
Bruce MurrayIts highest-margin businesses are the ones that are growing the most. Raising a lot of capital, putting pressure on the stock.
Brendan Caldwell
For growth, the street sees Apple as a staple that commands pricing power. Apple couldn't meet demand for the 14 Pro, so the price of the 15 Pro will be higher. The company has levers to pull. For years, Amazon spent too much money to fuel growth, but that limited margins. Any company has to spend money on AI. Overall, Amazon is in a Goldilocks period: they will benefit from existing spending/investments, and they will improve margins for the next few quarters, but spending will resume again. Apple hasn't pulled those levers yet, but the street is giving it a premium, and demand for products is not inelastic. Watch demand in the next 2-3 replacement cycles.